A growing economy, rising household formations, low mortgage rates and pent-up demand will help single-family housing production to increase in 2015, according to economists who participated the National Association of Home Builders Fall Construction Forecast Webinar.
In addition, participants anticipate that growth in renters will keep the multifamily market strong.
“Single-family builders are feeling good. They are not overly confident, but confident enough to keep moving forward,” said NAHB Chief Economist David Crowe.
He added that the single-family sector will finish out the year much stronger than it began and set the stage for a robust 2015.
“This is mostly due to significant pent-up demand and steady job and economic growth that will allow trade-up buyers who have delayed home purchases due to job insecurity to enter the marketplace,” said Crowe.
NAHB is forecasting 991,000 total housing starts in 2014, up 6.6 percent from 930,000 units last year.