With tight inventory a major factor in many US housing markets, a new report says that housing starts will increase by 2.4% annually through until 2022.
Market researchers Freedonia Group says that single-family home construction will lead the rise as builders respond to improving market conditions including rising employment and stronger consumer finances.
Gains will also be supported by population growth and an increase in household creation.
Despite the gains, the report says that by 2022 we’ll only be back to levels last seen in 2007 but that issues in the last bubble including easy access to mortgage credit are unlikely to be repeated in this current wave.
One factor of note for the rising single-family starts is smaller homes. IN a reversal of the trend over the last 10 years, the average size of new single-unit conventional homes is expected to decline through 2022.
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