With three million home building-related jobs lost nationally as a result of the current economic slowdown, members of the North Carolina Home Builders Association say that the answer lies with bringing confidence back to the consumer.

David Crowe, chief economist for that National Association of Home Builders, says there is a "complete lack of confidence from consumers," which is evident from the plummeting of sales of new and existing homes.

Nationally, there are one million more empty homes for sale than what the market should typically expect and a half million more for rent, Crowe said. This has led to a decrease in production that is at its lowest point since 1959.

The effect of this has been layoffs across the board in building-related fields due to decreased home building.

Richard Gaylord, president of Richard Gaylord Homes in Raleigh, said three years ago his company produced 26 homes. That number decreased to eight in 2008. And at the current moment, he has no houses under construction.

With this drop in production has come necessary layoffs, Gaylord said. The company started 2008 with eight employees on staff and it is currently down to three. Of those five people Gaylord was forced to layoff he said none have been successful in securing new, stable jobs, and he would ask any of them back if the market permitted.

"In my 29 years, I have never seen a market come to an absolute stop like this," Gaylord said.

The decrease of home buying and home construction is also trickling down to industries that, in that past, have been heavily supported by new home construction. As Rick Judson, owner of Evergreen Homes in Matthews, N.C., points out, an average of $7,500 is spent on new home furnishings for every new home that is purchased.

Stock Building Supply President Joe Appelmann said that the whole support system behind home building has been affected by the economic downturn. Nationally, 52 percent of Stock's workforce has faced layoffs. To put that in perspective, Appelmann said that is 9,000 families.

Dan Tingen, president of Tingen Construction in Raleigh, says a major cause for the slowdown in construction is the lack of interested buyers. Consumers are afraid to buy new homes because of the uncertainty of the economy, Tingen said.

Ultimately, the solution is to get buyers back into the marketplace, Crowe said.

However, before that can happen, Appelmann notes that confidence must be restored in the consumers by keeping homeowners in their homes; which will in turn help stabilize home prices in neighborhoods.

Related Links

1. N.C. Home Builders Association