Mutlifamily starts expected to increase through 2014 but still remain below peak level
Mutlifamily starts are expected to increase more than 30 percent this year, an additional 20 percent in 2013 and another 9 percent in 2014, said Kermit Baker, chief economist for the American Institute of Architects, at the recent Window and Door Manufacturers Association Executive Management Conference in Boston. "Even with this, we’ll still be at 305,000 starts, well below the peak of 400,000," he said.
Both the collapse of the housing market and the economy are contributing to growth in the national rentership rate, Baker said, noting that a wide range of households across gender, race, marital status and even age have joined the ranks of renters since the housing downturn.
Economists at the WDMA event predicted housing starts would grow 20 percent to 22 percent in 2013, with remodeling seeing a 4 percent increase.
Jonathan Smoke, Hanley Wood’s Executive Director of Market Intelligence, summarized the projected numbers for 2013:
- 874,000 housing starts
- 10,472,378 R&R projects
- 1,508,970 are projects over $1,000
- 4,523,236 door replacements