Buffett says industries tied to housing will buoy U.S. economy: VIDEO

TRD MIAMI /
Oct.October 24, 2012 05:15 PM

With so much uncertainty in the global economic markets, positive signs in residential housing – especially in the U.S. – may point to brighter times to come, billionaire Warren Buffett told CNBC. The recovery of industries that directly benefit from a strong housing market, such as carpet and brick manufacturers, will also help to push the U.S. economy forward, he said.

Buffet cited a 10 percent to 15 percent increase in sales at Clayton Homes, his manufactured housing firm, and noted that the median price had also gone up slightly.

“This [sales increase] comes from all over the country. You name it. So that’s changed,” Buffett said. “We’re going to make a lot more money on carpet this year than we made last year, and we hire people when that happens. So the U.S. economy is not tanking.”

Although the U.S. economy is still “inching” along, it has the “steadiest trajectory” of any economy, he said. Buffett also reiterated his belief that unemployment will not decrease until the housing market improves – the inverse of the oft-cited adage that housing will not strengthen until more people have jobs. Buffett argued that demand for housing comes first, because a business cannot hire until it sees demand. [CNBC]Christopher Cameron


Related Articles

arrow_forward_ios
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley

Baptist, Belmont gain approval for luxury senior living in Coral Gables

Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project

Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)

Sunrise affordable senior housing facility sells for $30M

Sunrise affordable senior housing facility sells for $30M
Mark Zilbert

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices

Let’s make a deal? Some resi sellers in Miami-Dade slash asking prices
(Credit: iStock)

Home sales dropped big time in South Florida in April

Home sales dropped big time in South Florida in April
 Rendering of Father Marquess-Barry Apartments with Matt Rieger

HTG scores financing for senior affordable housing in Overtown

HTG scores financing for senior affordable housing in Overtown
Renderings of different versions of the project with Matt Rieger

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown

HTG plans 1,000-unit affordable housing complex in Miami’s Overtown
Pharrell Williams (Credit: Ethan Miller/Getty Images)

South Florida by the numbers: Bright spots in a challenging market

South Florida by the numbers: Bright spots in a challenging market
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...