“The possibility of one million starts in 2013 should not be dismissed as all 50 states will see increases in single family housing this year.”
PORTLAND CEMENT ASSOCIATION – What’s the cement industry got to do with housing?
We need more of one when the other is in recovery mode.
The cement industry is actually a lot closer to what’s doing in housing than some number crunchers counting housing starts.
Cement is the basic ingredient in concrete, a primary building material.
The industry has to ready to deliver as soon as builders demand materials. They can’t wait for stale, month-old or older data to tell them when to speed up the production lines.
So when the Portland Cement Association (PCA) says all 50 states will usher in a housing recovery in 2013, pay attention.
“The possibility of one million starts in 2013 should not be dismissed,” said PCA Chief Economist Ed Sullivan.
“Although the first half 2013 will be mired in a fiscal cliff hangover, we are decidedly optimistic about second half economic growth, job creation and consumer sentiment – all of which translate into a stronger home sales and starts activity,” he added.
The PCA expects even stronger growth in home building in 2014, with starts surpassing 1.1 million.
What’s more in a shift from previous residential forecasts, PCA expects the recovery to be broad-based, reaching all 50 states with increases in single family home production this year.
Catch-up growth in the Southeast, Southwest
Already underway in the interior U.S., the emergence of accelerating construction growth has begun to appear in some of the hardest hit states during the housing bubble burst. These regions are now likely to lead growth in coming years as the long depressed markets begin to return to housing construction rates consistent with their demographics.
“As the recovery unfolds, regions that once lagged recovery now begin to emerge as growth leaders. The Southwest and Southeast, for example, still have the weakest housing fundamentals on a relative basis to the Interior U.S, but on a construction activity basis, given the extremely depressed bases from which these regions are recovering from, they will likely be the housing growth leaders in coming years,” Sullivan said.
A recent Top 10 Moving Destinations report from Penske Truck Rentals revealed that’s just where Americans who rent moving vehicles are going.
“This list fits the general geographic shifts of the country’s population with our customers being drawn to the Southeast and Southwest regions,” said Don Mikes, Penske Truck Rental’s senior vice president of rentals.
PCA also expects multifamily construction to continue to grow at a strong pace as favorable fundamentals fuel the sector. Multifamily starts recorded a 55 percent gain in 2011 and 36 percent growth in 2012.
PCA expects an additional growth of 15 percent in 2013 to 277,000 units. Damaged credit due to foreclosure activity and tight mortgage lending standards have combined to create robust apartment demand.
DeadlineNews.Com contributed to this story.