US residential housing market expected to strengthen this year

According to Edward J. Sullivan, Portland Cement Association (PCA) Chief Economist and Group Vice-President, US housing starts are expected to rise to 1.2 million units in 2015, up 20% y/y. Speaking at the 2015 International Builders’ Show, Sullivan explained that gains in the residential housing market are also likely in 2016.

Multifamily unit starts are forecast to increase by 12% y/y to almost 400 000 in 2015, a growth pattern that is set to continue as high student debt prevents millennials from entering the new home market and the baby boomer generation leaves the market. Meanwhile, 800 000 new unit starts are expected in the single-family market this year.

“The forecast is based on sustained strength in the labour markets with more than 3 million net new jobs created in both 2015 and 2016,” said Sullivan. “In addition, wage gains in the context of sub-6% unemployment are expected to reinforce labour market fundamentals.”

Adapted from press release by Louise Fordham

Read the article online at: https://www.worldcement.com/the-americas/21012015/growth-in-us-housing-starts-expected-for-2015-181/