Builder's return is encouraging news

ALBUQUERQUE (KRQE) - After leaving the state last year because of the tough housing market, KB Home has returned, building several homes at an Albuquerque development, and experts believe the move could be a sign of a slow but steady increase in building.

"We have seen an uptick in housing starts over the last quarter," said Jim Folkman, vice president of the Home Builders Association of Central New Mexico.

Folkman said new home construction is up 23 percent from the third quarter of 2008.

"In 2005, to give you a point of reference, we had about 9,450 homes built," he said. "In 2008, we had just 2,000."

Folkman said people are starting to buy homes again with many incentives helping to cut down on the price.

"The increased demand for the first-time homebuyer tax credit and continued low interest rates all indicate our market has turned around," he said.

Folkman said the new construction is good for consumers and the local economy. He said that on average, new homeowners spend $9,000 on furniture, appliances and other home improvement items.

The news is also good for construction workers. The association said 20 to 40 percent of the construction workforce is unemployed.