Housing Market to Rebound in 2011

The housing industry will see gradual improvements in 2011 as the U.S. economy and job market continue to improve, establishing momentum that will produce bigger gains in 2012, according to economists who appeared that the National Association of Home Builders' International Builders' Show in Orlando on Jan. 12. NAHB Chief Economist David Crowe forecasted 575,000 single-family home starts in 2011, a 21 percent climb over an estimated 475,000 units started in 2010. "This year's spring selling season will be better than last year's," Crowe said; however, small builders' access to credit could hamper industry gains. The recession delayed as many as two million household formations over the past few years, Crowe added, as individuals doubled up with family and friends to weather a dismal job market; these households will begin to form as jobs improve, and they "are the next to move into a new home or apartment."