Eye On Housing
Author Archives
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A Primer on Border-Adjusted Taxes
In June 2016, House Republicans introduced the outline of a tax reform proposal (a.k.a. the blueprint). The blueprint includes significant changes to how business income would be taxed. In particular, corporate taxation would move toward a cash-flow tax (CFT). In their most basic form, CFTs tax income based on where the income ultimately flows. In contrast, income tax liability currently… Read More ›
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Softwood Lumber, Gypsum Products Lead Price Increases Among Building Materials
The prices of softwood lumber, gypsum, ready-mix concrete, and OSB all increased in February, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The increases were led by gypsum products, with softwood lumber a close second. After decreasing in four of five months, the price of softwood lumber rose in February. The 4.8% increase was the… Read More ›
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Lumber Prices Rise to Start 2017
The price of lumber, from framing to structural panels, has increased in recent weeks with some prices rising more than 30%. Softwood lumber prices have been relatively steady since 2014. During this period, the largest one-week price increase of framing lumber (+6.8%), as measured by the Random Lengths Framing Lumber Composite Index, occurred in the middle of the recent price… Read More ›
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Pace of Residential Construction Spending Continues Positive Trend
Private residential construction got off to an auspicious start in 2017, continuing the growth trend that began in October of last year. NAHB analysis of Census Construction Spending data shows that total private residential construction spending grew 0.5% in January 2017 to a seasonally adjusted annual rate (SAAR) of $476.4 billion. Multifamily construction spending in January grew by 2.2% to a seasonally-adjusted… Read More ›
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Have Gypsum Prices Found a New Normal?
The prices of ready-mix concrete, gypsum, and softwood lumber fell 0.2%, 3.5%, and 0.1%, respectively, in January according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. OSB prices ticked up 1.8%, reversing the 1.3% price decline in December. Long-term trends in gypsum and ready-mix concrete prices are in focus this month, albeit for different reasons. Gypsum… Read More ›
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Who Claims the Home Office Deduction?
With tax preparation season well underway, it is a good time to examine the use of the home office deduction. Often cited as a “red flag” for tax audits, the home office deduction is a legitimate business deduction particularly important for certain professionals and small business owners. Moreover – from the housing economics perspective – IRS data concerning the deduction,… Read More ›
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Conventionally Financed New Home Sales Reach Nine-year High in 2016
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that 70.8% of new home sales in 2016 were financed with conventional products—up from the most recent trough of 58.5% in 2010. Conversely, over the same period, the share of new home sales financed with FHA mortgages has fallen from 25.1% to… Read More ›
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Residential Construction Spending Ends 2016 on High Note
NAHB analysis of Census Construction Spending data shows that total private residential construction spending grew 0.5% in December 2016 to a seasonally adjusted annual rate (SAAR) of $466.9 billion. After slowing in August and September the SAAR of spending on residential construction finishes 2016 with its third consecutive monthly increase. Multifamily construction spending in December grew by 2.8% to a seasonally-adjusted annual… Read More ›
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Housing Share of GDP Essentially Unchanged
With the release of the final estimates of third quarter 2016 GDP growth (revised up three-tenths to a 3.5% growth rate), housing’s share of gross domestic product (GDP) fell 0.1 percentage point to 15.6%. The home building and remodeling component—residential fixed investment—as a share of GDP held steady at 3.5%. Housing-related activities contribute to GDP in two basic ways. The… Read More ›
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Property Taxes by State – 2015
The 2015 American Community Survey data shows that New Jersey still leads the nation with the highest average annual real estate tax (RET) bill of $8,180—$7,528 more than RETs paid by Alabama’s homeowners. The overall distribution remained roughly unchanged since 2014, as the composition of the top and bottom ten remained the same. The map below clearly illustrates that the highest property… Read More ›