Charts: Housing & Economic Indicators for Sept. 2016
Virginia Tech and the U.S. Forest Service jointly put out a housing and economic commentary each month. SBC Magazine will begin following and highlighting key aspects of this commentary going forward.
The September numbers indicate strong growth in the resiential construction market, which lead to their projections for 2017.
All indications point to a steady, if modest, increase in housing starts for the next two years.
As reported previously, wood will continue to be the dominant material used in single-family structural framing.
Leading up to the housing market crash, the U.S. residential construction industry was building homes at well above the 1963-2015 average. After the crash, it built homes at a significantly lower rate. As it approaches the 1963-2015 average again, the key question is whether it will remain close to this trend, stay below it, or exceed it again, potentially replicating what occurred from 2000-2006 (with a view toward tracking any possible downturn). SBC Magazine will monitor this trend on an ongoing basis to provide our readers insight with regard to whether the U.S. residential construction industry is overbuilding or underbuilding in relation to the 1963-2015 average.
This chart indicates the sale of new single-family homes will likely increase in the future as the ratio of sales to propulation has remained well below the historical break-even point. SBC Magazine will be monitoring this trend on an ongoing basis to provide our readers insight on the latent demand for housing.
The following slides are focused on key economic indicators for the construction market to provide additional perspective on anticipated demand for new construction.
Mark Vittner from Wells Fargo, has stated that the purchasing managers index is a good indicator of future economic performance and growth or recession . Indices are intended to serve as good barometers for future economic performance by looking at past trends. SBC Magazine will continue to provide these indices monthly as a key part of our reader support services.