Housing industry analysts are skeptical about whether the construction that will result from Hurricane Sandy will offset the property damage that occurred. NationalMortgageNews reports Ken Simonson, president of the National Association for Business Economics and chief economist at the Associated General Contractors of America, does not regard it with much of a net positive. “Insurance proceeds will take awhile to turn into construction,” he says, especially projects that require tear down, clearing, design and engineering. He notes houses may not be replaced on a one-for-one basis, and many businesses that were wiped out may not re-open. Others that had targeted expansion may postpone their plans. He also does not expect much growth in construction jobs because there is already spare capacity. As MHProNews knows, winter weather will likely hinder a lot of the re-construction process.
