News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Eye on Housing Blog / NAHB / January 8, 2013
The prospects for home building in 2014 are bright. NAHB is forecasting a nearly 25% gain in total housing starts, with a 32% pickup in single-family construction. And the coming year will come atop the gains of 2013. NAHB expects that the final numbers will show that housing starts expanded almost 18% last year to a total of 921,000.
November housing starts data from the Census and the Department of Housing and Development show an uptick after weakness in home construction during the fall. Total housing starts topped an annualized pace of one million, the first time since 2008. Single-familyRead More
An unusually wet spring and early summer dampened cement consumption for the first quarter of 2013, but did not put a wet blanket on the opportunity for strong growth in the construction sector in 2014 and beyond.
According to the latest forecast from the Portland Cement Association (PCA), cement consumption will increase a modest four percent in 2013, but will approach double-digit growth in 2014 and 2015, with 9.7 percent consumption increases in both years.
“Nearly two-thirds of the anticipated growth in 2013 cement consumption will be caused by gains in the residential constructionRead More
The Wall Street Journal / August 11, 2013
The U.S. economic growth outlook has been upgraded to decent from lousy—which, while some distance from good, is likely good enough for the Federal Reserve to pull back on its stimulus later this year.
On the positive side, fears of another downturn are minimal. Economists in the latest Wall Street Journal economic forecasting survey put less than a 15% chance on another recession hitting in the next 12 months.
But at the same time, they put only a 13% chance that growth in gross domestic product this year will be stronger than the long-run average of 3.5%.
The latest GDP data released last monthRead More
Bradley Hunter / Metrostudy News / April 29, 2013
I had already been calling for strong home price increases in 2013, and the latest evidence in the market suggests that the increases may be even stronger than most are forecasting. I am now expecting price increases in the new home subdivisions of 9.0% in 2013, and in the best “A/B” submarkets, 11%-15%. These are same-project forecasts, not averages. Resale home prices will rise as well, but not quite as fast; homebuilders will be driven by extreme cost pressures, and consumer demand will continue to strengthen this year, allowing builders to pass along the higher costs.
By 2014/2015,Read More
Craig Webb / REMODELING / February 8, 2013
RRI expected to climb 2.8% from 2012′s showing
Remodeling and replacement project activity nationwide will strengthen this year from a 2012 that saw business rise in all four quarters, Hanley Wood’s latest Residential Remodeling Index (RRI) indicates. The RRI, released today, is forecast by the end of this year to rise 2.8% over the index’s score of 84.08 as of the fourth quarter of 2012. That in turn is 0.3% better than the third quarter of 2012 and 2.4% above where the RRI stood in the final three months of 2011.
“We should pick up steam each quarter for the next severalRead More