Tag Archive for ‘construction’

Rental Market Continues to Strengthen

The most recent data from the Survey of Market Absorption of Apartments (SOMA) showed that completions of privately financed, nonsubsidized, unfurnished rental apartments continued to climb in the fourth quarter of 2012. The reported 31,600 completions in buildings with 5+ units were slightly above the third quarter level and more than doubled since the fourth quarter of 2011. At the… Read More ›

Apartment Production Spikes to an Unsustainable Rate

The Census Bureau’s preliminary estimate for starts in buildings with five or more apartments in March came in at a massive (seasonally adjusted annual) rate of 392,000 units.  In the Census construction report, this shows up as a 27 percent increase over February.  However, the number for February was itself revised upward by 24,000—so the five-plus starts rate for March… Read More ›

Immigrant Workers in Construction

A new study from NAHB Economics examines where construction workers come from by analyzing the most recent 2011 American Community Survey (ACS). The results show that immigrants have been an important source of new recruits to the construction industry—accounting for 22 percent of the overall labor force. The inflow of foreign born labor into construction is cyclical and coincides with… Read More ›

Multifamily Production Index Shows More Improvement

In the fourth quarter of 2012, NAHB’s Multifamily Production Index (MPI) increased two points to 54, marking the fourth straight quarter the index has been over the key break-even point of 50.  The MPI is an overall measure of builder and developer sentiment on current conditions in the apartment and condominium market. The MPI is built from three components, capturing… Read More ›

Apartment Construction Continues to Improve

Completions of unfurnished apartments for rent or sale in 5+ unit properties climbed to more than 30,000 units during the third quarter of 2012, a 20% increase versus the third quarter of 2011. The Survey of Market Absorption of Apartments (SOMA) tracks completions and market absorption rates (units rented or sold after construction of the property is complete) for apartments sold or… Read More ›

NAHB Survey on AD&C Lending for the 4th Quarter

Builders and developers continue to report that credit for acquisition, development, and construction (AD&C) is improving slightly, according to NAHB’s survey on AD&C financing.  In the fourth quarter of 2012, the overall net tightening index based on the AD&C survey was -4.5, which was little changed from the third quarter.  The index is constructed so negative numbers indicate easing of credit;… Read More ›

NAHB Survey on AD&C Lending for the 4th Quarter

Builders and developers continue to report that credit for acquisition, development, and construction (AD&C) is improving slightly, according to NAHB’s survey on AD&C financing.  In the fourth quarter of 2012, the overall net tightening index based on the AD&C survey was -4.5, which was little changed from the third quarter.  The index is constructed so negative numbers indicate easing of credit;… Read More ›

Multifamily Production Falls Back to November Rate

The Census Bureau’s preliminary estimate of starts in buildings with five or more apartments for January came in at 260,000 (at a seasonally adjusted  annual rate).  As predicted in last month’s post, a rate well in excess of 300,000 proved too high to sustain.  In fact, the five-plus starts rate for December was revised upward, from 330,000 to 352,000—so the preliminary… Read More ›

Multifamily Production Rate Hits 4.5-Year High

In December, the (seasonally adjusted) annual rate of starts in buildings with five or more apartments increased by 23 percent from the revised figure for November, to 330,000.  The November figure was revised down substantially, but the big news is that the rate of multifamily production continues to climb, even after the large improvements it made in September and October of 2012—to the point where,… Read More ›