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Homebuilding recovery will continue despite thorns in its side

The homebuilding recovery is running into a number of constraints, prompting three consecutive monthly falls in the NAHB homebuilder confidence index. In a worst-case scenario, confidence could weaken further and housing starts could mark time. But by far and away the most likely outcome is that the construction industry’s growing pains are overcome and homebuilders break ground on many more sites over the next few years.

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