New data and analysis from Fitch Ratings, Moody’s Analytics and Zacks paint a rosy picture for economic growth in 2013, thanks in part to new construction and new housing trends.
In a survey by CNN Money, analysts forecast 1 million new housing units starting this year. The number, bolstered by lower lumber prices and higher demand for new buildings, means the U.S. economy should receive a boost from construction this year.
The construction industry has been one of the biggest casualties of the dire economic straits the country has endured the last four years. But Fitch Ratings’ latest numbers puts 2013 single-family starters at a growth rate of 18 percent, with new home sales increasing by 22 percent. The growth rate means big things for a lackluster economic picture. Not only will construction jobs experience a boost, but the entire building and real estate industry should experience a resurgence, courtesy of the new housing trends for 2013.
Even if you’re not planning on building a new home this year, the news is still promising. With new home construction on the rise, home prices should also increase: CNN’s analysts predict a 3.7 percent gain.
It’s not only new homes and construction experiencing a boom. With the construction industry on the rise, home renovations and “do it yourself” projects are also helping dig out the economy. In fact, construction giant Lowes plans to hire 45,000 seasonal workers and 9,000 permanent employees to help match the rising demand for building supplies, according to Bloomberg.com.
With confidence in the housing market restored, the American economy should experience a more stable year. While the new construction market can’t promise to flip the economy completely, it can help provide major repairs and renovations while the job, auto and finance markets work on building a solid foundation.
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