Other housing options may restrain demand for single-unit housing, according to Freedonia Focus Reports
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A new report projects that U.S. housing starts will reach a total of 1.6 million units in 2021 as strengthening consumer finances boosts construction.
The “Housing: United States” report, released recently by Freedonia Focus Reports, showed that single-unit conventional housing represents the largest and fastest-growing segment. Starts for such units will be driven by growing household creation and gains in the economy. The report also said that the projected improvement in single-unit starts comes as many consumers have a preference for detached homes and other types of single-unit housing.
Other housing options will dampen demand for single-unit housing, however, according to the report. These options include manufactured housing, which offers a substitute at a lower cost. Single-unit demand will also be affected by the availability of multiple-unit housing options like condominiums. The report further said that the number of young people based in urban areas who want to live in or near downtown will be a factor in single-unit demand as space in such areas for single-unit housing developments are unlikely to exist.
Recent data from the Department of Housing and Urban Development and the U.S. Census Bureau showed that June saw a rebound in groundbreaking in new homes leading to the fastest annualized growth seen in four months. During the month, privately owned housing starts were at a seasonally adjusted annual rate of more than 1.2 million, up by 8.3% from the 1.12 million revised estimate for May and a year-over-year increase at 2.1% from the 1.19 million starts in June 2016. Single-family housing starts rose 6.3% to an 849,000 rate in June, compared with the revised 799,000 figure for May.
Related stories:
Skilled labor shortage, higher development costs drive inventory slump
June rebound drives housing starts to four-month high
The “Housing: United States” report, released recently by Freedonia Focus Reports, showed that single-unit conventional housing represents the largest and fastest-growing segment. Starts for such units will be driven by growing household creation and gains in the economy. The report also said that the projected improvement in single-unit starts comes as many consumers have a preference for detached homes and other types of single-unit housing.
Other housing options will dampen demand for single-unit housing, however, according to the report. These options include manufactured housing, which offers a substitute at a lower cost. Single-unit demand will also be affected by the availability of multiple-unit housing options like condominiums. The report further said that the number of young people based in urban areas who want to live in or near downtown will be a factor in single-unit demand as space in such areas for single-unit housing developments are unlikely to exist.
Recent data from the Department of Housing and Urban Development and the U.S. Census Bureau showed that June saw a rebound in groundbreaking in new homes leading to the fastest annualized growth seen in four months. During the month, privately owned housing starts were at a seasonally adjusted annual rate of more than 1.2 million, up by 8.3% from the 1.12 million revised estimate for May and a year-over-year increase at 2.1% from the 1.19 million starts in June 2016. Single-family housing starts rose 6.3% to an 849,000 rate in June, compared with the revised 799,000 figure for May.
Related stories:
Skilled labor shortage, higher development costs drive inventory slump
June rebound drives housing starts to four-month high
