Gas prices & housing – what’s the connection?

Here’s how oil’s drop could impact housing construction

Moody’s: Moderate benefits for builders, homebuyers

house construction

Industries for which fuel is a direct and significant cost will see a positive effect from lower oil prices, as will consumer-dependent businesses more generally, since lower gasoline prices mean consumers will have more cash to spend on other items, a client note from Moody’s says. But oil and gas exploration and production companies, and the companies that supply them, will be hurt by lower crude prices.

“U.S. building materials companies that produce aggregates, ready-mixed concrete and cement will benefit moderately from lower oil prices in 2015.” Moody’s analysts write. “Costs associated with transporting materials will decline with diesel costs, but these companies will also benefit from broader economic gains from higher consumer consumption and healthier state and national budgets.”

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Author: kimhuntkw

We specialize in Real Estate in the Pleasanton, Dublin and Livermore areas of the East Bay in California

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