This is the time of year when economists pull out their crystal balls and peer into the future to predict what the next year will bring. When it comes to housing in the U.S., the prognosticators are seeing some positive signs for 2014.
Timber Products Company recently hosted a nationally recognized economist who shared some detailed insights and statistics that show the housing industry is poised to continue its rebound from the 2008 crash. Here are some interesting numbers to consider:
- In 2013, new home starts are expected to come in at 925,000; just two years ago there were 610,000 starts.
- Excess capacity in 2013 stood at 725,000 units; in 2014 that number should shrink drastically to 275,000 units as demand goes up and housing starts surge past the 1 million mark.
- By 2015, the inventory excess will drop into the negative as the market corrects itself and demand exceeds supply.
- If you really want to look long-term, housing construction is forecast to hit 1.85 million units in 2018; exactly double the amount from 2013.
There’s no doubt that housing is a large driver of the economy. As the economy recovers, new households will form and seek shelter, new home inventories will hit rock bottom, and demand will outstrip supply. The economic trends are heading that way. These numbers equal a positive environment for new kitchen cabinets, remodeling and other home improvements, which will be good for your business.
What questions do you have? What are your economic predictions for 2014 in your area?