Eye On Housing
Author Archives
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Residential Fixed Investment Reaches Near-Decade High
Final estimates of first quarter 2017 GDP growth (revised up two-tenths of a percentage point to 1.4%), show that housing’s share of gross domestic product (GDP) was unchanged at 15.6%. The home building and remodeling component—residential fixed investment (RFI)—increased 0.1 percentage point to 3.6% as a share of GDP. The first-quarter expansion of RFI added 0.48 percentage point to the… Read More ›
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Property Tax Revenues Increase for 18th Straight Quarter
NAHB analysis of the Census Bureau’s quarterly tax data shows that $541 billion in taxes were paid by property owners over the four quarters ending in Q4 2016.[1] This represents a $23 billion—or 4.5%—increase over the previous trailing four quarters. Although this growth rate declined for the first time in a year and a half, it remains robust relative to… Read More ›
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Prices of Softwood Lumber and OSB Keep Climbing
The prices of softwood lumber and OSB increased by 2.2% and 3.3%, respectively, in May according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The increases were a return to the 2017 norm, as softwood lumber and OSB have led building materials price gains in every month except April, when gypsum prices rose 5.1%. In contrast,… Read More ›
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Gypsum Leads Broad-based Price Increases in April
For the third straight month, prices of softwood lumber, gypsum, ready-mix concrete, and OSB all increased, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. Unlike March, when softwood lumber and OSB led price increases, gypsum topped the list in April with prices increasing 5.1%. As expected, the price of softwood lumber increased again in April. … Read More ›
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Cash Finances Smallest Share of New Home Sales Since 2010
NAHB analysis of the most recent Quarterly Sales by Price and Financing published by the Census Bureau reveals that just 4.7% of new home sales in the first quarter of 2017 were purchased with cash—down from the most recent peak of 9.5% in the fourth quarter of 2014. In contrast, the share of new home sales financed with conventional mortgages… Read More ›
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Softwood Lumber and OSB Push Building Materials Prices Higher
For the second consecutive month, prices of softwood lumber, gypsum, ready-mix concrete, and OSB all increased, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The increases were led by softwood lumber and OSB. The price of softwood lumber increased 2.3% in March after rising 4.8% in February. Softwood lumber prices have increased 7.2% over the… Read More ›
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New Residential Energy Tax Credit Estimates
In 2005, Congress established a number of energy-efficiency tax incentives related to housing that benefitted new home buyers and remodeling homeowners. These policies included the tax code section 45L credit for the construction of energy-efficient homes (including for-rent residences and low-rise apartments), the 25C credit for retrofitting/remodeling existing homes, and the 25D credit for the installation of power production property in… Read More ›
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Housing Provides Boost to GDP
Final estimates of fourth quarter 2016 GDP growth (revised up two-tenths of a percentage point to 2.1%), show that housing’s share of gross domestic product (GDP) was unchanged at 15.6%. The home building and remodeling component—residential fixed investment (RFI)—also held steady at 3.5% as a share of GDP. The fourth-quarter expansion of RFI added 0.35 percentage points to the headline… Read More ›
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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 ›