Tag Archive for ‘construction’

Housing Affordability Registers Slight Uptick in First Quarter

Rising wages and moderating home prices offset a rise in mortgage interest rates to give housing affordability a slight boost in the first quarter of 2017, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).  In all, 60.3 percent of new and existing homes sold between the beginning of January and end of March were affordable… Read More ›

How Much Do Residential Remodelers Earn in a Year?

Findings from the recently released Remodelers’ Cost of Doing Business Study: 2017 Edition show that the net profit margin for the typical residential remodeler increased to 5.3% in 2015, up from 3.0% in 2011. Combining all sources, remodelers reported an average $1.8 million in revenue for 2015, of which $1.3 million (71.1%) went to pay for cost of sales items… Read More ›

Builder Confidence Continues to Settle Back to Sustainable Levels in February

Builder confidence in the market for newly-built single-family homes declined two points in February to a level of 65 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The HMI had risen sharply in December 2016 (up to 69) as the election results raised hopes among builders that a new Congress and administration will help create a better business… Read More ›

Rising Home Prices Affect Housing Affordability in the Second Quarter

Solid home price appreciation more than offset a modest reduction in mortgage interest rates to push housing affordability lower in the second quarter of 2016, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). In all, 62 percent of new and existing homes sold between the beginning of April and end of June were affordable to… Read More ›

The Number of Residential Construction Firms Owned by Minorities is on the Rise

The total number of residential construction firms in the country (single-family builders, multifamily builders, and residential remodelers) dropped to around 689,000 in 2012, 12% lower than in 2007, according to the U.S. Census Bureau’s Survey of Business Owners (collected only in years ending in ‘2’ and ‘7’). While the industry as a whole contracted during those five years, the share… Read More ›

New House Price Data Show Why Costs Are a Problem

New data released by the U.S. Census Bureau and the Department of Housing and Urban Development provide strong evidence that the costs of producing new housing are making it difficult to impossible to build homes for a significant part of the U.S. housing market. At the beginning of June, the Census Bureau traditionally releases data about the Characteristics of New… Read More ›

NAHB Estimates 55,000 Single-family Tear-down Starts in 2015

Approximately 7.7% of single-family home starts in 2015 were attributable to tear-down related construction, according to the latest estimates from NAHB. Tear-down starts refer to construction of a home on a site where a previous structure was torn down before the new home could begin development. NAHB estimates 55,000 total tear-downs for 2015. Anecdotal evidence suggests that tear-down construction has become a… Read More ›

Over Half of New Homes are Built in Community Associations

According to data from the Census Bureau’s Survey of Construction (SOC), 58 percent of all homes started in 2014 were built within a community or home owner’s association. The Census Bureau defines a community or homeowner’s associations as “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created… Read More ›

What’s the Average Profit Margin of Single-family Builders?

Industry benchmarks on profit margins, asset levels, and equity positions are important because they allow businesses to compare their performance to their peers, and that can be extremely helpful in identifying areas for improvement and increasing efficiencies. This is the reason why NAHB periodically conducts a survey asking single-family builders nationwide to (confidentially) provide us their income statements and balance… Read More ›

Homebuilder and Remodeler Cost Breakdown

NAHB analysis of the latest Economic Census data shows that, on average, residential construction establishments were able to cover their hard and soft construction costs and generate positive profits in 2012. The 2012 data show that the direct costs of construction – consisting of construction payroll, costs of construction work subcontracted out to others, and costs for materials/supplies – vary… Read More ›

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