12:32pm

Mon February 25, 2013
Business

Tennessee's Housing Sector Finally on the Mend

MUFREESBORO, Tenn. (WMOT)  --  The University of Tennessee is out with a yearly economic forecast that state government uses to plan its budget and the outlook is mostly favorable.

The study, prepared by the UT Center for Business and Economic Research, predicts Tennessee’s economy will grow this year, but at an even slower pace than in 2012.

UT’s Matt Murray, one of the report’s authors, says that for the first time since the recession, Tennessee’s housing sector is growing again.

“We’re seeing increases in permitting. We’re seeing increases in starts. We’re seeing fairly strong growth in construction activity. We’re seeing substantial growth in the value of residential construction investment. All of the indications are that the housing market is no involved in an earnest rebound.”

Murray says the state’s economy as a whole will remain sluggish in 2012, but also says the new vitality in the housing sector will be the engine that powers a much better economic year in 2014.