It will still be some time before the recovery matches the GDP and employment numbers of the mid 2000's. We have not found a replacement for new housing construction. Housing will not pick up until demand exceeds supply. There is still a foreclosure hang over the market that will not disappear for several years. Consumers were burnt and they are no longer counting on housing appreciation to be their savings. Thus the housing construction business is stuck in neutral.
The net wrthth of families shrunk from the housing debacle As a result, Americans have less to spend and are more cautious. They are also concerned about the federal deficit and our countries inability to govern. Consumer debt was also over extended and we are not in the mood to use credit cards like a piggy bank. Read More: http://goo.gl/Wn4Tj