Demand for New Homes Expected to Increase

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

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

The forecast, “The Next Decade for Housing,” projects 1.2 millionsingle-family home construction starts, 343,000 multifamily starts and276,000 mobile home shipments per year during the 2001-10 period.

Major housing trends outlined by the report include an increasingemphasis on trade-up, second homes and “young seniors” housing marketsduring the next five years, as baby boomers reach retirement age. Therental, starter-home and broader seniors markets will come on strong inthe decade’s second half.

The national ownership rate could exceed 70% by the end of thisdecade, 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-technologyfeatures.

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

* Higher density development and more building in the cities.