Housing is Healthier but Still Subpar

 

Based on demographics and other factors, an annual average of 1.8 million housing starts per year will be needed over the next 10 years and 2010 starts are not likely to provide even half of what is needed.

This year promises to be a happier one for both the economy and housing. More pain from a battered and bruised U.S. economy may lie ahead but the general trajectory has turned from down to up.

The worst is over, but the economy and housing in particular will remain subpar and unable to perform at normal, healthy levels. This means it could still take a few years for the landscape industry to rebound to its 2005 and 2006 levels.

National Association of Home Builders projects a long haul back to full health following a long, brutal recession. The national economy will continue to gain strength throughout the year, but at a slower pace than is characteristic for the early stages of recovery.

Real (inflation-adjusted) gross domestic product (GDP) is expected to grow about 3 percent in 2010, compared to essentially no growth (0.4 percent) in 2008 and negative growth (an estimated decline of 2.5 percent) for 2009.

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