Eye On Housing
Author Archives
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New Home Sales Overperform in April
After weakening in March, the volume of new home sales came in much better than expected in April. Due to economic challenges associated with COVID-19, NAHB was forecasting an additional sales decline in April. However, new home sales estimates from the Census Bureau reveal relatively flat conditions compared to March. The Census estimates reported a 623,000 seasonally adjusted annual rate… Read More ›
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Multifamily Built-for-Rent: 94% Market Share During 1Q20
An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to first quarter 2020 data, the average per unit square footage of multifamily housing construction starts was 1,086, off from the post-recession high set at the start of 2015 (1,247 square feet). The median was 1,031 square feet for… Read More ›
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New Single-Family Home Size Declines Ending?
New single-family home size has trended lower over the last four years as builders sought to add additional entry-level supply to an inventory-starved housing market. However, the coronavirus and the recession of 2020 potentially reset those trends, as evidence grows that households will seek more space for home offices, home gyms, and other purposes. According to first quarter 2020 data… Read More ›
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Gains Expected for Single-Family Built-for-Rent Construction
The number of single-family homes built-for-rent (SFBFR) posted a small year-over-year increase for the first quarter of 2020 despite otherwise challenging market conditions. The SFBFR market has received attention as a means to add single-family inventory amid concerns over housing affordability and downpayment requirements in the for-sale market, particularly during a period involving elevated unemployment and weak wage growth. Single-family… Read More ›
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Townhouse Construction Flat at Start of 2020
According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, townhouse construction experienced was flat on a year-over-year basis during the first quarter of 2020. Over the past four quarters, single-family attached housing experienced a small decline, which matches data in the NAHB HBGI. Those estimates reveal reduced construction activity for large metro… Read More ›
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Small Gain for Custom Home Building During 1Q20
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building posted a small increase during the first three months of the year, supported by low interest rates and unseasonably mild weather in January and February. While housing construction starts declined in March, and considerably more in April, on net the first quarter… Read More ›
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Broad Declines for Housing Starts in April
As indicated by the NAHB/Wells Fargo Housing Market Index (HMI), housing starts retreated in April due to the economic consequences of government-imposed lockdowns associated with virus mitigation. Single-family starts were 25% lower in April, at a seasonally adjusted annual rate of 650,000. Since the peak rate in February, the pace of single-family construction has declined 37%. The April pace was… Read More ›
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Builder Confidence Posts Solid Gain After Historic Drop
In a signal that the housing market is showing signs of stabilizing and gradually moving forward in the wake of the COVID-19 pandemic, builder confidence in the market for newly-built single-family homes increased seven points to 37 in May, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The rise in builder sentiment follows the… Read More ›
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Construction Layoffs in March
Backward-looking data illustrate the degree of damage done by the sudden stop of the U.S. economy due to the public health response associated with the coronavirus. For example, there were 4,300 net job losses in residential construction in March, followed by a staggering 415,000 losses in home building and remodeling in April. The leading edge of this job loss was… Read More ›
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Gain for Housing Share of GDP During 1Q20
During the first quarter. GDP growth posted its worst performance since the Great Recession, recording a -4.8% growth rate. However, housing’s share of gross domestic product (GDP) increased slightly to 14.9%. The home building and remodeling component – residential fixed investment – also increased slightly, rising to 3.3%. As the economy begins a recovery later in 2020, we expect housing… Read More ›