The article below provides a brief high-level summary of the con- struction outlook for both the resi- dential and commercial markets, including an estimate of tile con- sumption for 2018. Residential construction Residential new and remodeling construction plays a significant role in tile consumption and is a key barometer to the overall economy. Over the past several years, the residential market has continued to climb out of the trough from the recession, and has shown growth throughout 2017. Home values increased again in 2017 while existing home inventory remained at normal levels. Overall, residen- tial growth looks forward to con- tinued expansion in 2018. New Housing starts – 2017 total new housing starts increased overall only around 3% over 2016. Single-family starts were relatively healthy, increas- ing over 2016 by almost 9%, however multi-family construction dragged the overall category down – starts for multi-family were down close to 8% after some high growth years in 2014 and 2015 resulting in overbuilding for the segment. For 2018, new total housing starts are projected to only increase close to 3% again, with single-family up only around 5% and multi-family slightly down ver- sus last year. Total units again will hover around 1.3M. The impact from the Tax Cuts and Jobs Act signed into law recently will most likely dampen housing activity in very high home value markets ($1M or greater homes). However, it will not impact the majority of U.S. home owners, since they are still able to deduct interest payments on mortgage debt up to $750,000 which includes new mortgages or improvements made BUSINESS FEATURE –––––––––––––––––– Economic outlook By Sean P. Boyle, Vice President Marketing, LATICRETE International Globally Proven Construction Solutions US Total New Housing Starts- Units Source: NAHB (000’s) Includes Single and multi-family units 0 200 400 600 800 1,000 1,200 1,400 1,600 07 08 0 10 11 12 13 14 15 16 17F 18F +4.8% 32 TileLetter | March 2018