The housing industry will have 10% growth over the next two or three years, says Mark Kiesel, CIO at Pimco.
Millennials have held off buying homes, but as the economy adds jobs, more are looking to set down roots, Kiesel told CNBC. The 5 million people that lost their homes during the recession are also recovering and may want to try to buy again. The job growth and housing demand will offset concerns about long term rate rises, he says.
With inventories at 15-year lows, new houses have to be built. Writes CNBC:
“You’ve added 1.5 million in household formations over the last year. That’s now starting to see a significant recovery,” said Kiesel, Pimco’s chief investment officer of global credit.
Photo: Diana Parkhouse