Builder sentiment stable, growth expected for 2014
Posted on Monday, November 18, 2013 at 10:31:35 AM
Those interested in residential financing may have a few more options over the next year in the form of new construction.
Recent data from McGraw Hill Construction foresees a fair level of growth for the industry in 2014, with the charge being led by residential real estate. Overall, single family housing is expected to grow 26 percent in dollars next year, up to 785,000 new units. This is due to several reasons, like affordable residential financing rates and fewer foreclosures.
"The 2014 picture bears some similarity to what's taking place during 2013, with single family housing providing much of the upward push; multifamily housing showing a slower yet still healthy rate of growth after four years of expansion, and commercial building gradually ascending from low levels," said Robert Murray, McGraw Hill Construction's vice president of economic affairs. "One change that's expected for 2014 is that institutional building will no longer be pulling down nonresidential building and total construction."
In addition, builder confidence has remained steady in November for new single-family homes, according to the National Association of Home Builders. The Housing Market Index, a measure of this data, was at 54 for the month. Any number over 50 means more builders than not view conditions as positive.