The residential construction industry's recovery has moved along a slow and steady path as the housing market struggled to find its footing after the crash eight years ago.
Despite the lack of growth in homebuilding, economists are optimistic about the future —the market has been able to move past the boom and bust ramifications. In fact, during a webinar Wednesday, Len Kiefer, deputy chief economist at Freddie Mac, said he expects 2016 to be housing's "best year in a decade."
The webinar also featured National Association of Home Builders Chief Economist Robert Dietz and NAHB Senior Economist Robert Denk, who — along with Kiefer — offered their predictions for the future of residential construction.
The single-family market is expected to see the strongest growth this year, as Dietz predicts 2016 will be the first year since the crash that single-family construction will outpace multifamily. His forecast includes a 14% rise in the sector this year and a 19% surge in 2017.
A note that although the recovery has been a "slow process," market conditions are ripe for a more powerful upward trend in the coming years. Although some economists have pointed to millennials' tendency to rent, most surveys reveal "most want to live in a single-family home in the suburbs." With more buyers pouring in, he predicted that more builders will see major demand in the remainder of 2016 and through 2017.