Pca Predicts Fewer 2008 Housing Starts
- Published: Friday, 01 August 2008 08:00
Recent economic data reinforces Portland Cement Association's outlook for continued declines in housing starts, according to a PCA Flash Report. Weak economic conditions, tight credit conditions, tepid sales and high inventories have prompted a prediction of a 36% decline in starts for 2008 followed by an additional 1% decline in 2009. ìDespite large home price declines and improved affordability, sales remain sluggish and offer little hope that the inventory glut will be worked off anytime soon,ì says PCA Chief Economist Ed Sullivan.
Foreclosures added to the market during 2008 and early 2009 will cause inventory levels to remain in excess of 10 month's supply during the remainder of the year and not reach desired levels until the second half of 2010, PCA reports. The residential sector will act as a significant drag on cement consumption during 2008. Cement consumption declined by 11.5 million metric tons in 2007. Three quarters of that decline was attributed to the drop-off in single-family housing starts.