A forecast from HomeAdvisor says that single-family starts will increase 12.2 percent to 900,000 units this year, while multifamily construction will drop 10.7 percent to 343,000.
Job growth, rising household formations, surging mortgage rates, and labor shortages all factored into the prediction.
The site also performed two simulations that predicted home production. Total housing starts reached 1.4 million in 2017 in the “Overshoot” scenario, where builders construct more aggressively. The “Slow Climb” scenario, which anticipates conservative building, estimates that total starts will reach 1.3 million in 2019.
Advertisement
Related Stories
New-Home Sales
New-Home Sales Steady During February
A small increase in mortgage rates during February led to a flat reading for new-home sales
Market Data + Trends
Hottest Markets for Rental Activity in February
Looking at February's rental activity, the West continued to be the most desirable region for apartment hunters for the second month in a row, with the South close behind
Market Data + Trends
Looking Ahead: Second-Quarter Housing Market Trends
Industry pros offer insights about what real estate trends we can expect to see during the next three months