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Demand for New Homes Expected to Increase

March 25, 2001|Inman News Features

An average of 1.82 million new housing units will be needed each year for the next 10 years to meet the underlying demand for housing, according to the National Assn. of Home Builders' newly published 10-year forecast.

This projection is for far more homes than the average of 1.66 million units produced annually during the 1991-2000 period.

The forecast, "The Next Decade for Housing," projects 1.2 million single-family home construction starts, 343,000 multifamily starts and 276,000 mobile home shipments per year during the 2001-10 period.

Major housing trends outlined by the report include an increasing emphasis on trade-up, second homes and "young seniors" housing markets during the next five years, as baby boomers reach retirement age. The rental, starter-home and broader seniors markets will come on strong in the decade's second half.

The national ownership rate could exceed 70% by the end of this decade, according to the NAHB. Other trends in the next 10 years, according to the report, will include:

* More amenities in new homes, with an emphasis on high-technology features.

* Constraints on the use of raw materials will encourage use of such alternatives as engineered wood, concrete and steel.

* Higher density development and more building in the cities.

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