Housing starts across the United States are expected to increase 1.3% annually through 2023, according to a new report.
US housing stock is expected to grow nearly 1% through 2023, according to a report from market-research firm Freedonia Group.
“Single-unit conventional housing will continue to dominate, with a projected 69% share in 2023,” the report said. “Household formation will spur ongoing gains in housing construction. With higher levels of housing completions in the forecast period than during the 2008-2018 period, a larger share of construction will represent net additions to the stock rather than simply offsetting retirements of older units.”
According to the report, the definition of housing starts differs by type of building. A housing start for a conventional building (which includes modular and pre-cut homes) is counted on the date foundation work begins, while for manufactured housing, the date of placement represents a housing start.
“The fastest growth is expected for manufactured homes,” the report said. “Design enhancements that allow the homes to more closely resemble conventional housing as well as more specialized and value-added features will support demand. In terms of value, expenditures on residential building construction, including improvements, are projected to expand 3.6% per year to 2023. Spending on single-unit structures is expected to outpace gains in multiple-unit structures only marginally.”