Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

When the recovery in home building comes, it could be massive

With home building grinding to a halt, some analysts are beginning to discuss the size of the potential recovery.

Analysts at Wheaton-Ill.-based First Trust Advisors are predicting that the rate of new housing starts will bottom out this quarter, though they aren’t ready to say when the country will be in full-out recovery mode.

But when builders put their construction crews back to work (whenever that happens), the pace of starts could triple from last month’s anemic pace of about 466,000 to at least 1.5 million, said First Trust Advisors senior economist Robert Stein, who wrote a Feb. 16 report on housing starts with chief economist Brian Wesbury.

“The production level for houses … has gone to unsustainably low levels,” Stein told me today. “Once the excess inventory is worked off, we are poised for a major increase in residential building.”

That will give a much-needed boost to the economy. Stein says the pace of construction has to increase because the U.S. population is growing and old houses need to be replaced. At the current pace of housing starts, it would take 279 years to replace the country’s 130 million houses, he said. The typical replacement rate for a house is about 70 years.

blog comments powered by Disqus