Please Follow Us On:

Follow Delta Gypsum on LinkedIn

Delta Gypsum on LinkedIn

Friday, January 18, 2013

Housing Starts End the Year with a Bang

Housing starts surged 12.1 percent in December to a 954,000-unit pace, likely reflecting seasonal noise and some year-end tax jitters. Multifamily starts rose 20.3 percent and single-family starts were up 8.1 percent.

The Outlook for Housing Starts
We expect starts will increase to a sustainable pace of roughly 990,000-units in 2013 with much of the gains in single-family. Despite some monthly volatility, all price measures are improving which should encourage more single-family activity as the labor market continues to strengthen. With single-family gaining solid footing, multifamily will likely begin to stabilize. We believe the trend toward multifamily housing will continue, but starts should see a peak in the next few years. That said, the housing market will likely continue to be a bright spot for the U.S. economy over 2013 with real residential construction continuing to add to real GDP growth.

No comments:

Post a Comment