While our economy is not quite back to where it once was, it is looking considerably better than it had five years ago. Unemployment is the one unrelenting problem that continues to be a hindrance to achieving that goal.
According to Freddie Mac's US Economic and Housing Market Outlook report, one bright spot in the unemployment reports though is the housing industry. Construction job growth has been strong, despite weak unemployment surveys overall.
This beautiful housing recovery we are in the midst of translates to more housing units being built by more builders as evidence that housing starts surpassed one million starts at an annualized rate for the first time since 2007. That is an improvement of 47% more compared to March 2012. One of the hardest hit industries over the past six years has been the construction industry, but over the past six months, construction jobs have been responsible for 15% of all job growth.
"Housing construction is
starting to pick up, but is well below historical averages," Nothaft said.
"Supported by low mortgage rates, we expect more homes to be built in 2013
than in any year since 2007. This increased construction employment should
continue to help bring down the overall unemployment rate."
According to the report, the housing sector is expected to
add a half a percentage point to GDP growth in 2013. The construction recovery will continue to grow and spur overall job growth as long as housing prices continue to grow and interest rates remain low.
What is your perception on the recovery of our economy and the construction industry in particular?
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