NAHB Sees Pick Up in Building Next Year

Washington, DC, Oct. 28, 2010 -- The National Association of Home Builders cut its 2010 forecast for single-family home construction, but said activity will pick up over the next two years as the economy improves.

Single-family housing starts are expected to grow 8.4% this year to 479,000 before construction hits 655,000 new houses in 2011 and 970,000 in 2012, the association said.

“Single-family starts will revive, slowly,” chief economist David Crowe said.

In May, the group had forecast 552,000 single-family starts in 2010.

Construction of multifamily has already begun a recovery. NAHB predicted an 11.6% rise in new multifamily construction to 125,000 this year, rising to 149,000 in 2011 and 210,000 in 2012.

The group in May expected multifamily housing starts to fall 18% to 93,000 units this year, before rebounding to 150,000 units in 2011.

Crowe said a major problem in the sector is a lack of credit available for builders.