Issue link: http://read.dmtmag.com/i/134956
Market Trends BINGO! U.S. Housing Market Finally Getting Its Numbers Led by multifamily starts for now, recovery will gradually continue as demand bends to new kinds of demographic trends. By Dana E. Neuts Since the nation's recession in 2008 and 2009, the U.S. economy has experienced a bumpy road to recovery, impacting everything from employment to housing. GDP revealed the economy experienced several strong quarters of growth beginning in 2010, but an average economic growth of just 1.6 percent in 2012 was not exactly what one would hope to see in a recovery. But there's good news – relatively speaking – according Dr. David Crowe, chief economist and senior vice president for the National Association of Home Builders. Despite the uncertain, up-and-down recovery, NAHB forecasts economic growth for the next two years: 2 percent in 2013 and 3.2 percent in 2014. "We are still struggling, so 2 percent for the year is not that great," Dr. Crowe explains. "Improvement will be gradual, but the fundamentals are all here." The housing market, which represents 3 percent of U.S. GDP, typically leads the economy out of a recession. Not only did that not occur following the Great Recession, but the homebuyer tax credits that helped stimulate the housing industry briefly in 2009 and 2010 provided only a temporary tourniquet – the market dipped immediately after the tax credits expired, dropping to a record low of nearly -30 percent in September 2010. (continued on page 28) 26 | www.cedmag.com | Construction Equipment Distribution | June 2013 26_Housing_Feature_Index_KP.indd 26 5/31/13 12:35 PM