The Big Picture
2023 was a year in which almost everything went up, especially in price, as inflation, while slowing, still represents some 20% growth over the past three years. The affects carry across the housing industry, as not only have materials and labor increased, but interest rates are hovering in the 6-11% range for first time home buyers. This in stressing the housing industry, with permits and starts declining throughout the year, looking to slow the multi-year growth of project completions, even in the facing of a growing housing shortage.

 
In July, the National Association of Home Builders (NAHB) reported on the Consumer Price Index, which measures the change in price for a market basket of consumer goods and services, in which they found that prices had risen by an average of 3.2% from the previous 12 months. The association also found that the rise in prices was led by a heavy increase in shelter inflation (rent and housing costs) which was up by 7.7%.

Balancing the economy is the growth in manufacturing and infrastructure. For manufacturing though, tighter gov't restrictions are threatening to bring this segment to a stand-still. For Infrastructure, which is mostly coming from federal and state governments, transportation leads the charge with bridges, highways and streetscape benefiting the most.

Nationally, GDP has been holding in the 1-4% range, driven by increased consumer spending, private inventory investment, exports, and government spending at various levels, alongside residential fixed investment. However, this positive momentum faced headwinds from a decline in nonresidential fixed investment, a deceleration in state and local government spending, and an increase in imports.

So, in 2024 there will be continuing pressures from inflation, high interest rates and gov't restrictions. With the Landscape Architectural profession still in its infancy, we must do everything possible to enhance your reputation and presence in the overall development industry. 2024 is going to be a challenge, but with the right attitude and leadership, 2024, which will mark LASN's 40th year of publication, will be a solid year for those who put in the effort.
https://tinyurl.com/GDP-2023
https://tinyurl.com/NAHB-Inflation-23