IRVINE, CA—A number of factors pull in the housing sector's direction, such as jobs, household formations and a lack of supply supported by the demographics of Millennials and Baby Boomers, TRI Pointe Group's CEO Doug Bauer tells GlobeSt.com. We sat down with Bauer for an exclusive chat about his firm's strategy and the housing industry's potential for this year.

GlobeSt.com: What can you tell us about your markets and product? Where are you looking for land, currently building, etc. and why?

Bauer: California, Seattle, Las Vegas and Phoenix all show healthy demand. Houston still has some storm clouds, but we view rays of sunshine coming through in 2017. The Washington, DC/Virginia area has seen positive job growth and could become a very healthy market in 2017 with the new administration. TRI Pointe Group owns and controls all of the land and lots we need for 2017 and more than 90% of those we need for 2018. We will continue to look for land opportunities in all of our markets in the best locations near major transportation corridors, good schools, and amenities. Our land strategy in 2017 is to fill our pipeline for deliveries in 2019 and beyond as we continue to view housing with an elongated cycle.

GlobeSt.com: What big events do you think will shape the housing industry in 2017?

Bauer: In 2017, I believe the single-family home starts and permits will continue to build momentum as households are priced out of rental housing, and we will see growth of 7% to 10%.

GlobeSt.com: What do you anticipate will be the biggest challenges in housing in 2017 and how will TRI Pointe Group address them?

Bauer: Labor and regulatory constraints will be the biggest issues facing TRI Pointe and our industry in 2017. As a company, we will continue to partner with our trades to provide them projects ready to build, to keep on schedule and pay on time.

GlobeSt.com: What impact do you think the election results, on a federal and state level, will have on housing in 2017?

Bauer: It's easier to speak to the federal level with the incoming new administration. Deregulation will be significant to our industry and others, and the reduction of corporate tax rates will make the United States more competitive and allow capital to flow back to capital expenditures and investors.

GlobeSt.com: Can you describe the general outlook and sentiment of the industry as we look toward 2017?

Bauer: We believe the housing industry is poised for more growth as a number of factors pull in our direction, such as jobs, household formations, and a lack of supply supported by the demographics of the Millennials and Baby Boomers.

GlobeSt.com: What can you tell us about your markets and product? Where are you looking for land, currently building, etc. and why?

GlobeSt.com: What big events do you think will shape the housing industry in 2017?

Bauer: In 2017, I believe the single-family home starts and permits will continue to build momentum as households are priced out of rental housing, and we will see growth of 7% to 10%.

GlobeSt.com: What do you anticipate will be the biggest challenges in housing in 2017 and how will TRI Pointe Group address them?

GlobeSt.com: What impact do you think the election results, on a federal and state level, will have on housing in 2017?

GlobeSt.com: Can you describe the general outlook and sentiment of the industry as we look toward 2017?

Instant Insights /

Housing Industry Poised for More Growth in 2017

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