Kansas City Fed: Residential Construction Might Dive After 2020

Photo Courtesy of Creative Commons
Photo Courtesy of Creative Commons

Although residential construction will probably grow for the next six years, slowing population growth should cause a sharp decline in demand for new homes after 2020, according to a report from the Federal Reserve Bank of Kansas City.

Jordan Rappaport, a senior economist for the Kansas City Fed, said that single-family housing starts are projected to increase by 150 percent from 2012 to 2021, and multi-family construction is expected to grow 10 percent annually until 2016 and peak in 2019.

However, there will be overall lower housing demand after 2020. Single-family construction is projected to drop to a level not seen since the 1990s, and multifamily construction will reach levels not seen since mid-1980s.

Read more from the Kansas City Business Journal


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