Stephen Auth, chief investment officer of Federated Investors, believes housing is on the road to recovery and could significantly contribute to economic growth within a year. Based on numbers compiled by JP Morgan Chase, Auth argues that housing starts will have to double just to keep up with demand, which is projected at 1.3 million units per year through 2014. Housing starts, which peaked at 2.1 million units in 2005, have been at 500,000-600,000 for more than a year. If those numbers hold, excess inventory will be absorbed and housing starts will rebound dramatically. More here.
Theresa Springer’s Blog
Analyst Forecasts Better Than Expected Housing Recovery
May 10, 2010
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