Dive Brief:
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As more sun-loving Americans migrate to warm-weather states in the South and West, business will boom for homebuilders who sell homes in coastal areas.
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The National Association of Home Builders has projected that new home construction in eight coastal states will rise by an average of 24% next year, up from 8% this year.
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Job growth in Texas, Florida, Arizona, Nevada, North Carolina, South Carolina, Georgia, and California is luring potential homebuyers from northern states. RBC Capital Markets reported that those states accounted for half of the nation’s job growth from September 2013 to September 2014, according to Reuters.
Dive Insight:
For big builders D.R. Horton, Lennar, and PulteGroup, which have a large presence in those states, RBC estimates orders for new homes to increase by an average of 16% next year. That’s up from 11.5% in the first three quarters of 2014.