Led by a resurgence in single-family production, housing will continue its climb toward higher ground in 2014, but builders are still confronting several challenges that could hinder the pace of the ongoing recovery, according to economists speaking at the National Association of Home Builders International Builders' Show in Las Vegas on Tuesday. "My single-family forecast for 2014 is pretty aggressive-822,000 starts, which is likely 200,000 more than 2013," NAHB Chief Economist David Crowe said in a statement. "There are five key points to the turnaround. Consumers are back, pent-up demand is emerging, there is a growing need for new construction, distressed sales are diminishing and builders see it."
Crowe also cautioned that builders still face several headwinds, including rising building material prices, persistently tight mortgage credit conditions, difficulties in obtaining accurate appraisals, and limited availability in labor and developed lots. Moreover, gridlock and uncertainty in Washington, D.C., threaten to harm consumer confidence and future housing demand, he said.
NAHB is forecasting 1.15 million total housing starts in 2014, up 24.5 percent from last year's total of 928,000 units.
