As we look forward to 2004,

builders and homeowners across the country can reflect on 2003, a banner

year for the home building and remodeling industry. Home sales and consumer

spending were the linchpins for the economy when growth slowed in late

2002 and early 2003, and a strong finish to what was a record-breaking

year for home sales bodes well for 2004.

Single family homes sold briskly

throughout 2003, and the National Association of Home Builders expects

that once all of the data is tabulated, sales of new single-family homes

will top more than one million units in 2003, a gain of 11 percent from

the 2002 record of 977,000 sales, largely thanks to favorable mortgage

rates and solid gains in house values. Single-family housing starts in

2003 likely will break another record, if the total exceeds 1.84 million

units as anticipated.

However, the year's gains

were not limited to single-family homes. According to a report released

13 percent during the first nine months of 2003 and that upward trend

is expected to continue. Professional remodelers also continued to enjoy

strong demand for their services in 2003, due to many of the same factors

that bolstered new-home sales, including low interest rates and rising

home values.

In 2004, home building is expected

to remain a strong contributor to the U.S. economy. Many indications point

to a continuously solid housing market; mortgage rates in the 6-percent

range, increasing consumer confidence and impressive house-price performance

likely will continue to work together to support the housing industry

throughout the new year.

What exactly does this mean

for consumers? First of all, the housing boom spells good things ahead

for the economy as a whole. An economic powerhouse, the housing industry

is estimated to account for a robust 14 percent of the country's

overall GDP, creating millions of jobs and generating billions of dollars

in tax revenue each year. Additionally, a spike in the production of new

homes encourages consumer spending on related items, such as appliances,

furnishings, home décor and home improvements.

Also, the strong new-homes

market offers an ongoing opportunity for more Americans to achieve the

dream of homeownership. A substantial influx of immigrants, along with

the growing importance of minorities and 'echo boomers' (the

children of baby boomers) can boost the share of housing production targeted

to entry-level buyers.

The future of the housing industry

is bright.

(Mac McKinney, who is owner

and president of McKinney Builders Inc., is president of the Home Builders

Association of Midwest Georgia, which serves a membership of approximately

550 builders and associate members in Fayette, Coweta, Spalding, Meriwether,

Heard, Pike, Upson, Lamar, Butts and Jasper counties.)

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