A rebound in Home Building after a six-year slump should generate as many as 500,000 jobs in 2013 and 700,000 in 2014 including related services, estimates Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit and the top forecaster of employment for the past two years, according to data compiled by Bloomberg.
“Housing is like a coiled spring” driven by “a lot of pent-up demand,” said Glenn Hubbard, dean of Columbia University’s business school in New York, who was chairman of the White House Council of Economic Advisers under President George W. Bush. “It is a real source of strength in the economy — from construction jobs and all the vendors who play into it.”
About half the jobs created by homebuilding are outside of construction, estimates the National Association of Home Builders, a Washington-based trade group. More than three jobs are created for each single-family home built, including related work, a 2008 study by the group estimates.