The construction sector is poised for strong growth and will become a leader in job creation, according to Sheryl Palmer, CEO of homebuilder Taylor Morrison.
You can watch the interview on CNBC here.
The company had its initial public offering Wednesday at the New York Stock Exchange.
“We are in such a good place. Everybody talks about being in early innings,” she said. “You look at the fundamentals around us, you look at the affordability, you look at the availability of inventory and the confidence people have-I think we have some good times ahead,” Palmer said.
“This is the industry that will feed job growth going forward,” she said. “I think every day we are doing good things for the economy.”
She said many markets that underperformed during the recession-including Phoenix, parts of Texas and Florida. and Northern California-are “on fire.”
“The mortgage market is in a pretty good place-a long way to go before we have to be concerned,” Palmer said, adding that affordability will help support it even in an environment of rising interest rates. “The land market is very difficult, it’s very tight,” she said. “Our core mantra is to make sure that we stay in those prime, core locations. So when you look at the land availability in those core markets, the supply is very constrained, but that’s good for us.”
Proceeds from the IPO will be used as “growth capital,” Palmer said, allowing Taylor Morrison to be “very selective” in buying real estate.
You can read more of what she said about the construction industry in this interview with Forbes magazine.