More jobs, low interest rates and growing demand should make 2015 a good year for the American housing industry, the NAHB says.
Economists working for the National Association of Home Builders made the predictions Jan. 20 during the group’s International Builders’ Show in Las Vegas.
“The signs point to a more robust year for housing,” Crowe said. “Household balance sheets are returning to normal levels, homeowners’ equity is increasing and significant pent-up demand is rising. More than 7 million existing home sales were postponed or lost during the downturn; and while some are lost forever, we should see some catch-up.”
In the last six months, the U.S. economic growth has averaged near 4 percent and the economy has added 250,000 jobs per month, Crowe said, adding that consumer confidence is back to pre-recession levels.
The NAHB is predicting 993,000 overall housing starts for the year, up from 930,000 in 2014. Single-family housing should see 804,000 starts this year — a 26 percent increase, Crowe said.
“While a good beginning, this is still well below a normal level of 1.3 to 1.4 million single-family starts,” Crowe said.
An estimated 564,000 single-family homes should be sold this year, a 29.3 percent increase from 2014’s 436,000.
NAHB said it expects 358,000 multifamily housing starts in 2015, up 2 percent from 352,000 last year.