Exclusive Research: Builders expect even better days in 2014

Home builders generally are optimistic about next year, but slow consumer income growth and other headwinds are creating a fair amount of pessimism for some.

By Mike Beirne, Editor January 3, 2014

How builders rate the 2013 housing recovery depends on their zip code. Housing starts nationwide through August are 23 percent ahead of last year’s pace, but 44.2 percent of builders participating in the 2014 Market Outlook Survey rated this year as mediocre-to-poor. Most of those builders hailed from the Middle Atlantic (New York, New Jersey, Pennsylvania), Mid-South (Alabama, Kentucky, Mississippi, and Tennessee) and the Great Lakes (Illinois, Indiana, Michigan, Ohio, and Wisconsin) regions.

Methodology and Respondent Information

This survey was distributed between October 22 and November 7, 2013, to a random sample of Professional Builder’s print and digital readers. No incentive was offered. By closing date, a total of 211 eligible readers responded. Respondent breakdown by discipline: 28 percent custom home builders; 25.1 percent diversified builder/remodelers; 16.9 percent production builders for move-up buyers; 6.3 percent production builders for first-time buyers; 4.4 percent architects engaged in home building; 3.9 percent manufactured or modular builders; 3.4 percent luxury production; 1.5 percent multifamily; and 10.6 percent other. Forty-seven percent of respondents will sell one to five homes in 2013, and 25.5 percent will sell more than 50 homes.

However, the majority of builders, 60.4 percent, indicated they were optimistic about the overall home building industry heading into 2014, and 72.8 percent said a year from now they expect to rate 2014 as good, very good, or excellent.

For more survey results, see the charts that follow.