The research team at Fannie Mae have revised their 2020 housing forecasts to much higher levels.  This past year, growth in single-family housing starts grew just over 1% annually.   Now, in 2020, single-family housing starts are expected to accelerate to 10% and top one million new homes by 2021.  The main factors driving the surge in home starts are a strong labor market, increased consumer spending, and low interest rates.

Supporting this forecast is a survey done by the National Association of Home Builders, which resulted in builder confidence increasing by five points in December to 76, the highest reading since June 1999.  Overall, both reports are strong indications that supply for housing in 2020 will begin to align much more with the strong demand that was prevalent throughout 2019.

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