Residential housing starts will be on the increase in 2015 according to the Portland Cement Association (PCA).
During the 2015 International Builders' Show, PCA chief economist and group vice-president Edward J. Sullivan said he expected US housing starts to increase +20% to 1.2 million units in 2015. This is up from roughly 950,000 units in 2014, and strong gains are also expected for 2016.
According to Mr Sullivan, multifamily units in particular should see a significant increase in starts compared to previous years with a +12% jump from 2014 levels. Nearly 400,000 multifamily starts are expected in 2015 in addition to 800,000 new units in the single-family market.
“The forecast is based on sustained strength in the labour markets with more than 3 million net new jobs created in both 2015 and 2016,” said Mr Sullivan. “In addition, wage gains in the context of sub-6 percent unemployment are expected to reinforce labour market fundamentals.”
Sustained strength in job creation, coupled with a gradual shift in the mix of jobs toward higher skill and more significant wage pressures suggest added strength to consumer spending according to Mr Sullivan.