When a new house is being built, it’s surrounded by construction workers and their trucks for months at a time until the job is finished. However, up until very recently, many new houses weren’t being built, meaning there were fewer of those work trucks needed. This appears to no longer be the case however as the housing market is slowly picking back up and in turn, more trucks are being sold once again.
According to a report in the Wall Street Journal, there appears to be a correlation between the rebounding housing market and truck sales. Since the job and housing markets have been so volatile in recent years, many people have held off purchasing a new truck until business became steady again. As more people are buying new houses, this affords workers the luxury of trading in an older truck for one with less miles and more amenities. The average vehicle on the roads in the United States today is 10 years old, that’s the oldest ever. A new truck can generate A new truck can generate a sizable profit for one’s business but unpredictable gas prices have curbed that number significantly as of late.
Last month, the rate of new homes being built was the highest it has been in four years, and is on pace for 760,000 units on an annual basis. As the home market continues to recover truck sales are expected to climb through the rest of 2012 and into 2013. Through the first six months of 2012, Ford has sold 301,141 F-Series trucks while General Motors has sold 267,453 Silverado and Sierra models. Chrysler Group LLC has sold 138,581 Ram trucks through June of this year and continues to pace the automaker’s sales. Many automakers expect sales to eclipse 14.2 million units which would be the highest since 2007, or right before the housing market began to enter a free fall. In 2004, the truck market’s its best year, Americans bought 2.46 million trucks, while sales only equaled 1.5 million in 2011.
What say you? Do you find yourself needing a truck for projects around the house? Tell us why you use a truck in the comment section below.
Source: Wall Street Journal