Read Mark O'Donoghue's comments
regarding the excerpt below, "Housing Starts Will Need to Rise Sharply"
What does this mean for Azcan?
If demand hits 23 million units over the next 10 years, as this analysis suggests, that translates into an average 2.3 million homes per year that will need to be built.
The US has been building at an annualized rate of between 250,000 and 400,000 homes over the last six months. In fact, the current build rates are the lowest since record keeping began in the early 1950's.
Obviously, there is a large gap between what will be required over the medium and long term and what is currently being built. The effect is a drawdown of excess inventories. Ultimately, the longer this goes on, the faster the industry will need to ramp up once excess inventories are absorbed. This is one of the key reasons we at Azcan see a pricing recovery to at least replacement cost (or current build cost) in the not too distant future.
The builder's will not construct those needed homes unless it is profitable to do so. And that requires prices to be much higher than they are currently.
We appreciate your support and your confidence in Azcan.
Please let us know how we can continue to assist you in our mutual growth.
Kind regards,
Mark O'Donoghue,
President
AZCAN RPG CORP
403-245-4440
403-991-4446 Cell
mark@azcan.ca
The US has been building at an annualized rate of between 250,000 and 400,000 homes over the last six months. In fact, the current build rates are the lowest since record keeping began in the early 1950's.
Obviously, there is a large gap between what will be required over the medium and long term and what is currently being built. The effect is a drawdown of excess inventories. Ultimately, the longer this goes on, the faster the industry will need to ramp up once excess inventories are absorbed. This is one of the key reasons we at Azcan see a pricing recovery to at least replacement cost (or current build cost) in the not too distant future.
The builder's will not construct those needed homes unless it is profitable to do so. And that requires prices to be much higher than they are currently.
We appreciate your support and your confidence in Azcan.
Please let us know how we can continue to assist you in our mutual growth.
Kind regards,
Mark O'Donoghue,
President
AZCAN RPG CORP
403-245-4440
403-991-4446 Cell
mark@azcan.ca
