Metrostudy's National Residential Economic Report is a modeled forecast released quarterly of over- and under supply of housing in the nation, as well as over- and under valuation, which impacts the future of housing most significantly. The five-year forecast is further informed by recurring national indices that track construction starts, employment, and other key indicators, and provides Metrostudy a framework to forecast the future state of housing across the nation, and in major markets.
Based off the findings in the first quarter report:
- Metrostudy forecasts that 1.2 million residential permits will be issued in 2016, translating to construction of 1.1 million homes and apartments. For every house built in the U.S., 3.1 jobs are expected to be created.
- Between 2.8 and 3 million jobs are expected to be created in 2016, and national employment will remain healthy in 2017. After 2017, employment is forecast to taper down, due to the fact that a low unemployment rate will make it difficult for employers to find laborers to expand at a fast pace.
- Stronger job creation in the construction industry is also expected in the future, based off the growth in construction employment recorded in recent months.
- Over the next five years, the state of housing is expected to stay healthy in terms of transactions and volume, but demand will most likely continue to outpace supply.
- Mortgage rates are expected to increase at a gradual rate starting at the latter half of 2016.
In this video, Senior Vice President of Metrostudy Mark Boud gives a rundown of Metrostudy's National Residential Economic Report for the first quarter of 2016. The report is also available for every major metropolitan market--access your market here.