Improved Housing Market Should Drive Small Business Employment Growth | Your Bottom Line
Small businesses traditionally dominate housing construction, and NFIB’s chief economist Bill Dunkelberg expects continued improvement in housing starts, driven by demographics and historically low interest rates. "New home sales have hit a post-recession high, but there's not many new homes to sell these days," said Dunkelberg. While housing starts are up to about 850,000, Dunkelberg said population growth and household formation rates should support a market of about 1.5 million starts.
Dunkelberg also pointed out that the market improvement is currently at the higher end. This suggests that the market for mid-range and lower valued housing has not rebounded as strongly, leaving plenty of room for growth. 2:39
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