China

One of the major forces in the world economy today is China, the second largest economy in the world.  While most of their housing is substandard by American criteria, they have been building a lot of housing units trying to improve their housing stock.

Because they are a communist country, their economy is centrally planned.  The leaders are not elected but they do like their positions and 1.3 Billion folks is a lot of people to have mad at you.

In order to provide jobs and hoping that will mean stability in their country, this Spring the Chinese leaders announced that they were hoping to build over the next five years a huge number of housing units.  If my memory is correct, the number was 90 Million.  I do remember the comparison was that it was more units than the total number of apartments that exist in America.

An indication of the impact on our timber market is that in 2009 China imported $511 Million of American timber and saw mill products, but by 2011 that total came to $1.8 Billion.  The announcement of their housing construction plans suggests that they will need even more of our timber and saw mill products.

We hope that the information we are sharing will assist you in making a timberland investment.  We believe doing so will make you look brilliant over the next 10 years.  Call us, at Grant Massie Land Company we love to help our clients look brilliant.