According to the National Association of Home Builders, an estimated 1.26 million housing starts are expected this year, 13.4 percent more from the last year.

Single-family production is estimated to reach 849,000 units. That is an 18 percent increase over 2015, but still below the average annual pace, which NAHB chief economist David Crowe said is 1.34 million units.

Single-family starts are expected to rise from 55 percent of normal production from 2015’s third quarter to 87 percent by the end of 2017. The NAHB estimates that the multifamily market will rise in 2016, with 417,000 housing starts. The market rise might also be aided by borrowers having easier access to credit in 2016.

With the projected increase in production for 2016, the top concerns for builders include cost and availability of developed lots and labor, federal environmental regulations and pricing policies, and increases in the costs of building materials.