Detached Home Preference
A new report projects that U.S. housing starts will reach a total of 1.6 million units in 2021 as strengthening consumer finances boosts construction. The “Housing: United States” report, released recently by Freedonia Focus Reports, showed that single-unit conventional housing represents the largest and fastest-growing segment. Starts for such units will be driven by growing household creation and gains in the economy. The report also said that the projected improvement in single-unit starts comes as many consumers have a preference for detached homes and other types of single-unit housing.
Other housing options will dampen demand for single-unit housing, however, according to the report. These options include manufactured housing, which offers a substitute at a lower cost. Single-unit demand will also be affected by the availability of multiple-unit housing options like condominiums. The report further said that the number of young people based in urban areas who want to live in or near downtown will be a factor in single-unit demand as space in such areas for single-unit housing developments are unlikely to exist.
Source: Mortgage Professional America