Merrill: Homebuilding Roiled by Weather

Weather has significantly affected homebuilders across the country, according to a new research report from Merrill Lynch.The company attended the Waste Expo held recently in Las Vegas, where analysts spoke with waste companies about their April construction volumes. According to the report, a weather-related slowdown in residential construction in the first quarter has caused pent-up demand in the early part of the second quarter. "A number of haulers are going as far as sending underutilized dumpsters from other regions to the strong residential markets like Phoenix and Southern California," the report said. In the Northwest, Merrill Lynch said the dry weather has resulted in strong construction activity, but in California, the severe rain has put a hold on many new developments. It is also becoming more difficult to sell a home in Las Vegas, the company said. David Rosenberg, Merrill Lynch's chief economist, is forecasting a 1% decline in housing starts in 2005, which will challenge the industry, the report said.