Economists See 20% Increase in Home Building

Orlando, FL, Jan. 13, 2010 -- New-home builders across the country can expect to see their business increase as much as 20% this year, according to a story in the Orlando Sentinel.

The story, quoting economists at the International Builders' Show in Orlando, indicated there is increasing  optimism about 2011, although numbers are likely to remain low compared to the boom years.

"We're coming in to 2011 not having had a very good latter half of 2010," said David Crowe, chief economist for the National Association of Home Builders. "Home sales will struggle but will follow employment growth … we are confident we'll begin to see a pickup in activity.

Crowe predicted that housing starts nationally will increase from 475,000 in 2010 to 575,000 this year and 860,000 the following year. Multi-family projects will increase from 114,000 last year to 133,000 this year and 203,0000 next year, he said.

"House prices will bottom out in 2011, and, by 2012, the house-price metric shows a gradual increase," said Freddie Mac Vice President Frank Nothaft.