US housing construction is expected to rebound this year from the severely depressed 2009 level, but the market remains fragile as foreclosures continue to rise.

Builders are likely to start construction on 610,000 single-family homes this year, up 38% from last year, according to David Crowe, chief economist for the National Association of Home Builders, which is meeting this week for its annual convention.

That forecast assumes that the total number of US jobs will start growing again in the second quarter. Housing starts would remain far below the 2005 peak of 1.7m.

Wall Street Journal