U.S. Housing Starts Forecast to Rise in 2015 
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Residential Construction Contractors
Quarterly Update


Industry Update

U.S. Housing Starts Forecast to Rise in 2015 
U.S. housing starts are expected to increase by more than 6 percent in 2015 compared to 2014, according to the National Association of Home Builders (NAHB) 2014 Fall Construction Forecast. Single-family housing production should see the strongest growth, rising 26 percent in 2015; multi-family projects are expected to stay on pace with 2014 growth of about 15 percent. Factors contributing to U.S. housing production growth include rising levels of housing formations, low mortgage rates, and pent-up demand for single-family homes. The NAHB expects residential remodeling activity to rise nearly 3 percent in 2015, after falling about 3 percent in 2014.

Industry Impact
Residential construction contractors may need to invest in additional equipment and personnel to keep pace amid rising demand for housing.

Industry Indicators

U.S. personal income, which drives consumer spending on home construction, rose 4.1 percent in September 2014 compared to the same month in 2013.
 
The value of U.S. residential construction spending, an indicator of the health of the residential construction market, rose 6.2 percent year-to-date in September 2014 compared to the same period in 2013.

Fast Facts

Companies in this industry construct and renovate residential buildings.
 
Major companies include DR Horton, KB Home, Lennar, NVR, and PulteGroup (all based in the U.S.), as well as Country Garden Holdings (Hong Kong), Daiwa House (Japan), Desarrolladora Homex (Mexico), and Carrillon (UK).
 
Major products are single-family homes and multifamily buildings.
 
Typical customers are home buyers and property investors.
 
Land planning and acquisition are major activities for builders.
 
Residential Construction Contractors
SIC Codes: 1521, 1522, 1531
NAICS Codes: 2361
Copyright © 2015 Skoda Minotti, All rights reserved.


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