After a significant period of suppressed activity, the housing market showed notable signs of growth in 2013. Single-family home construction especially has shown appreciable gains as demand increases and families find it more attractive and more feasible to own their homes. Industry sources suggest that the growth in single-family home construction in 2013 will continue into 2014 and beyond.
In a January 21, 2014, article in U.S. News & World Report, economist Robert Dietz reported that single-family home construction increased by 15 percent from 2012 to 2013. Remodeling of single-family homes also increased about 10 percent from November 2012 to November 2013, Dietz noted.
The total number of both multi-family and single-family construction projects increased for the 28th straight month as of December, 2013, according to the National Association of Home Builders (NAHB). Single-family construction by itself showed its 24th straight month of increase, from 331,000 to 339,000, the NAHB reported. This consistent, long-term increase in construction indicates a sustained recovery in the weakened home construction industry, Dietz stated.
For 2014, the NAHB predicts a substantial increase in housing starts of nearly 25 percent, with single-family projects increasing even more, according to an article on the NAHB website. Boosts in both builder and consumer confidence at the end of 2013, as well as continued low interest rates, help account for the projection.
The increases in single-family home construction are expected to have strong positive results for the overall U.S. economy. Dietz cited the NAHB’s findings that a single multi-family home construction project is expected to generate enough economic activity to sustain three jobs for a year. Even a projected 25 percent increase in new single-family home projects could account for nearly 85,000 new jobs in 2014.
In 2014, Dietz expects the housing industry to post its biggest gains since the end of the Great Recession of 2007-09.
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