Eye On Housing
Author Archives
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Interest Rates on Construction Loans Showed Rising Trend in 2018
Interest rates on loans for residential acquisition, development, and construction (AD&C) generally increased throughout 2018, according to results from NAHB’s fourth quarter AD&C survey. For the fourth quarter, builders and developers responding to the survey reported a median interest rate that varied from 5.75% on loans for pre-sold single-family construction, to 5.88% on loans for land development, to 6.00% on loans… Read More ›
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More Homes Needed to Replace Older Stock
Over the 40-year span from 1961 through 2000, housing starts averaged a little over 1.5 million a year, but they have been nowhere near that high since 2006. As a recent NAHB study explains, one outcome of this shortfall has been a tendency for older homes to remain in service longer. Attempts to improve the stock of housing in the U.S. (for example, through new… Read More ›
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Some Easing of AD&C Lending, According to Builders and Developers
In the third quarter of 2018, credit conditions eased somewhat, according to the builders and developers responding to NAHB’s survey on land acquisition, development, and construction (AD&C) loans. The net tightening index constructed from the NAHB survey was -12.0 in the third quarter quarter, compared to -5.0 the previous quarter. The index is constructed so negative numbers indicate easing of credit; positive tightening, so… Read More ›
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Share of New Homes with Patios Climbs over 58 Percent
Of the roughly 850,000 single-family homes started in 2017, 58.6 percent included patios, according to NAHB tabulation of data from the Survey of Construction (SOC, conducted by the U.S. Census Bureau and partially funded by HUD). Among the outdoor features captured in the SOC, this makes patios considerably more common than decks (included on 23.8 of homes started in 2017),… Read More ›
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Share of New Homes with Decks Remains Stable
Of the roughly 850,000 single-family homes started in 2017, 23.8 percent included decks, according to NAHB tabulation of data from the Survey of Construction (SOC, conducted by the U.S. Census Bureau and partially funded by HUD). This is little changed from the 23.7 percent recorded a year earlier. From 2005 to 2008, the share of new homes with decks was… Read More ›
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Labor and Subcontractor Costs Outpacing Inflation, Raising Home Prices
Last Thursday’s post reported on the record share of single-family builders reporting shortages of labor and subcontractors.in the July survey for the NAHB/Well Fargo Housing Market Index. The same survey asked builders about the effects the shortages were having on their businesses. The most widespread effects were causing builders to pay higher wages/subcontractor bids (reported by 84 percent of builders),… Read More ›
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Reported Shortage of Rough Carpentry Contractors Hits Record 90 Percent
Labor and subcontractor shortages became even more widespread in July of 2018 than they were a year earlier, according to single-family builders who responded to special questions on the survey for the NAHB/Well Fargo Housing Market Index. The July 2018 survey asked builders about shortages in 15 specific occupations that were either recommended by Home Builders Institute or other key… Read More ›
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In Four Southern States, Nearly 90 Percent of New Homes Have Porches
Of the roughly 850,000 single-family homes started in 2017, 64.7 percent were built with porches, according to NAHB tabulation of data from the Survey of Construction (SOC). The SOC is conducted on an ongoing, monthly basis by the U.S. Census Bureau, partially supported with funding from the Department of Housing and Urban Development. Among other things, the SOC data show that, over the… Read More ›
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Credit Conditions for AD&C Loans Close to Stable
In the second quarter of 2018, credit conditions for land acquisition, development, and single-family construction loans were close to stable, according to NAHB’s AD&C Financing Survey. The overall net tightening index constructed from the survey was -5.0. The index is constructed so that negative numbers indicate credit easing, positive numbers indicate tightening, and zero indicates perfectly stable conditions. The second… Read More ›
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Three-story Single-family Homes
Of the 729,000 single-family detached homes started in 2017, a little over 18,000 (2.5 percent) had three or more stories, according to NAHB tabulation of recently released Census data. The data come from the Survey of Construction (SOC, conducted by the U.S. Census Bureau with partial funding from HUD). Although the SOC has always collected data on 3-story single-family homes, the Census Bureau began publishing information on them only recently. Traditionally, the… Read More ›