A drop in multifamily home building was forecast.

Bruce Lippke, president of Wharton Econometric Forecasting Associates, told an economic outlook conference that he expects total U.S. housing starts in 1987 to be between 1.6 million and 1.7 million units. Such developments as the aging of baby boomers and tax law changes will bring a drop in multifamily housing starts, even at current low interest rates, Lippke said. By contrast, the single-family sector will benefit from mortgage rates remaining relatively low, and tax law changes will have little impact.