While nothing about the current state of the national economy indicates that there is a surefire industry or market to invest in for retirement, real estate has been one of the few bright spots of the recovery, with property values steadily rising since last year and sales generally holding steady month to month. However, the most recent data from the Commerce Department indicates that maybe even residential real estate isn't immune to the ebb and flow of the economic negativity making headlines over the past decade.
The information shows that compared to November 2013, the number of housing starts taking place in December were down roughly 10 percent, indicating that the surge in new home construction we saw in November – the largest month-over-month increase since February 2008 – was likely a fluke. Even still, members of the National Association of Home Builders are trying to look at the news positively, despite indications that any progress gained over the past several weeks may be leveling out or diminishing entirely.
"Last year was a good year for home building," David Crowe, the National Association of Home Builders' chief economist, said in a press release responding to the Commerce Department report. "As pent-up demand is unlocked and the labor market improves, we anticipate that 2014 should be an even better year for home construction. That's good news for economic growth, as each new home that is built creates three full-time jobs and contributes to the tax base of local communities."
While Crowe paints a positive picture, the numbers say it all, and with areas of the country like the Midwest seeing a drop of almost 34 percent in new home construction over the span of just one month, those who have placed their retirement investments in real estate need to take steps toward asset protection immediately.