The residential housing investments in Q1 2017 grew a huge 13.7%, which is the strongest quarter in 2 years. Data for new and existing home sales, home improvement spending and housing starts are greatly improved over those 2 years. Consumer spending in Q1 was pretty flat, growing just a slight 0.3%, but with employment and income increasing and home prices beginning to rise, consumer confidence is expected to rise along with them. What is also encouraging for the retail market is the makeup of new home buyers being new, young families, showing 1.2 million households were formed in Q1 alone. Housing is playing an essential role in the current economy and will have a direct impact on gross domestic product, as well as supporting overall economic growth and retail spending.
Source: NRF.com
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