US housing industry analysts predict housing starts will increase by 34% in 2010, according to industry newsletter Random Lengths.
Starts are forecast to grow from about 555,000 units in 2009 to 697,000-780,000 this year.
Reasons for the projected increase include the upcoming end to the tax-credit stimulus, growing affordability, an improving economy and a turnaround in the employment market.
However, wood product industry groups believe the upturn will be more modest, with the Western Wood Products Association forecasting starts at 668,000 units and APA – The Engineered Wood Association expecting to see 665,000.
All forecasters acknowledge economic risks may still hamper a recovery in the housing market,
Meanwhile, the Canada Mortgage and Housing Corporation predicts Canadian housing starts in 2009 to have reached 141,900 units, with 2010 likely to see up to 164,900.
Canada’s share of North American starts has now nearly doubled to 20.1% since 2005.
