“Housing will add to U.S. growth in 2012. After declining relentlessly for six consecutive years, and dropping to a record low of barely a 2% share of GDP, residential construction is finally poised to add (ever so slightly) to U.S. growth next year.  Homebuilder sentiment is slowly improving, home sales are creeping off the bottom, and rising rents are spurring construction of multiple-unit buildings.  Some of this simply reflects an improvement from incredibly depressed levels, and, even with modest strengthening, home prices will take longer to turn the corner.  In a related development, we also look for consumer spending to grow faster in the U.S. than in Canada, for the second year in a row. With U.S. job growth finally catching up to Canada, and plenty of pent-up demand, there is simply more runway for U.S. consumers.”

Five Fab Facts for 2011 & Five Fearless Forecasts for 2012 – BMO