US Housing Starts to Increase 1.3% in Unit Terms to 2023

11/7/2019

Cleveland, OH, November 7, 2019 — US housing starts are forecast to increase 1.3% annually in unit terms through 2023, according to Housing: United States, a report recently released by Freedonia Focus Reports. Builders will benefit from population growth and household creation, as well as strengthening consumer finances. The fastest growth is expected for manufactured homes. Design enhancements that allow the homes to more closely resemble conventional housing as well as more specialized and value-added features will support demand. In terms of value, expenditures on residential building construction, including improvements, are projected to expand 3.6% per year to 2023. Spending on single-unit structures is expected to outpace gains in multiple-unit structures only marginally.

The US housing stock is forecast to grow nearly 1.0% through 2023. Rapid advances in housing completions will boost the housing stock. Single-unit conventional housing will continue to dominate, with a projected 69% share in 2023. Household formation will spur ongoing gains in housing construction. With higher levels of housing completions in the forecast period than during the 2008-2018 period, a larger share of construction will represent net additions to the stock rather than simply offsetting retirements of older units.

These and other key insights are featured in Housing: United States. This report forecasts to 2023 US housing starts and the housing stock in units, and average floor space per new and existing units in square feet. Each measure is segmented by housing type in terms of:

  • single-unit conventional
  • multiple-unit conventional
  • manufactured

In addition, housing starts and the housing stock, as well as existing home sales, are segmented by region as follows:

  • South
  • Midwest
  • West
  • Northeast

Furthermore, spending on residential building construction in nominal US dollars is forecast to 2023 and is segmented by type as follows:

  • single-unit
  • multiple-unit
  • improvements

To illustrate historical trends, housing starts, the housing stock, existing home sales, average floor space, residential building construction expenditures, the median price of new single-unit conventional homes, interest rates, and the various segments are provided in annual series from 2008 to 2018.

The definition of housing starts differs by type of building. A housing start for a conventional building is counted on the date foundation work begins. For manufactured housing, the date of placement represents a housing start. Modular and precut varieties are not considered manufactured homes; they are conventional homes. As defined by the US Census Bureau, expenditures represent architectural and engineering costs; labor, material, and overhead costs; interest and taxes paid during construction; and contractors’ profits. Improvements include additions, alterations, and major replacements (e.g., heating systems) to existing structures, but exclude maintenance and repairs.

More information about the report is available at:

https://www.freedoniafocusreports.com/Housing-United-States-FF60024/?progid=91541