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Slowing but Continuing Growth in New Homes Market Forecast for 2021

Dec 03, 2020 by Marc Rapport

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Spending has been above expectations now for several months. Spending will moderate with slight increases and decreases but overall will increase up to 6% in 2021. Demand for new homes will remain high.
Multifamily construction will decline in 2021 before stabilizing in 2022, although apartment construction will see strength in lower-density markets. Remodeling will remain strong…. Tailwinds for continuing strength in the new-home business include low mortgage interest rates, favorable demographics, and a suburban shift for housing preferences. Upside surprises could include a faster-than-expected deployment of vaccines and antivirals.

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