Moody’s forecasts positive homebuilding growth
The outlook for the U.S. homebuilding industry is positive, reflecting expectations that the underlying drivers supporting the sector will continue, Moody's Investors Service says in a recent report.
The agency was positive in its outlook for builders, noting that the post-recession recovery has yielded the third-longest period of economic growth since World War II. Strong employment activity, rising household income and wages, and healthy consumer confidence are all drivers.
Revenues at publicly traded homebuilders are expected to rise by more than 10 percent in the next year, noted the report.
Also highlighted were some risk factors that have contributed to downward trends in other key market indicators, including limited supplies of skilled labor, restrictive mortgage lending, uncertainty about housing finance reform, and volatility in the global economy.
Housing demand is expected to be driven in growing amounts by millennials, the largest population group in the U.S. Active adult housing and first-time homes are also becoming a new sweet spot.
Read the article, “Moody's: Strong employment, low interest rates drive positive outlook for US homebuilding sector.”