Tag Archive for ‘home building’

Friday Poll: Labor or Lots

Housing demand is in relatively solid shape, with a healthy labor market and low mortgage interest rates. However, lack of labor and lots are limiting the amount of new construction that can be added to inventory.  In our first reader poll, tell us what you see in terms of supply-side headwinds. We’ll report the results next week.

Consumer Credit Outstanding: What’s Driving Auto Loan Growth?

Consumer credit outstanding expanded by a seasonally adjusted annual rate of 5.8% over the month of July 2016, 1.0 percentage point faster than its growth rate in June. According to the report, released by the Federal Reserve Board, there is now $3.66 trillion in outstanding consumer credit. Growth in revolving credit, which is largely composed of credit card debt, contributed to… Read More ›

Job Openings and Hiring Increase in Construction

The count of unfilled jobs in the overall construction sector rose in July, nearing the post-Great Recession high set in March. Residential construction hiring has also increased, after a period of soft gains in jobs. According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs (on a seasonally adjusted basis) rose to 214,000 in July, after establishing a… Read More ›

Concentration of Large Builders in Metropolitan Markets

NAHB analysis of information published in Builder Magazine shows that large builders gained market share on average each year from 2009 to 2014 in major metropolitan housing markets, before concentrations trended back somewhat in 2015. Figure 1 shows the annual average of the four statistics calculated for this analysis, and charts how these averages changed during the years following the… Read More ›

The Geography of Homes Built on Private Wells and with Individual Septic Systems

NAHB Economics analysis of the Survey of Construction (SOC) data shows that less than 9% of new single-family homes started in 2015 are served by individual wells and close to 16% have private septic systems. These shares, however, vary widely across the nine Census divisions with the corresponding shares reaching 39% and 47% in New England – the highest occurrence… Read More ›

Basements Didn’t Matter: New Homes Were Still Larger in 2015

A recent NAHB post shows that, after rising to a record high, the size of new single-family homes has leveled off and, as of the second quarter of 2016, is now trending downward slightly. Several things could be responsible.  NAHB (and others) have emphasized a changing mix of repeat and first-time home buyers.  Before focusing exclusively on this, however, it would be good… Read More ›

Pending Sales Expand

Led by the West, the Pending Home Sales Index increased 1.3% in July to the highest level since April, and increased 1.4% year-over-year. The Pending Home Sales Index (PHSI), a forward-looking indicator based on signed contracts reported by the National Association of Realtors (NAR), increased to 111.3 in July from a downwardly revised 109.9 in June. The PHSI surged to… Read More ›

More Growth for AD&C Lending

The volume of residential construction loans expanded 3.2% during the second quarter of 2016, marking 13 consecutive quarters of growth. Tight availability of acquisition, development and construction (AD&C) loans is a limiting factor on home building growth, but easing credit conditions and a growing loan base will help expand residential construction in a thin inventory environment. According to data from the FDIC and NAHB analysis,… Read More ›

Credit Standards on AD&C Construction Lending: A Tale of Two Sectors

According to NAHB’s Survey on Acquisition, Development & Construction Financing, residential real estate builders and developers reported that credit conditions for acquisition, development, and single-family construction (AD&C) loans were easier in the second quarter of 2016 than in the first quarter of 2016. Hence the NAHB net tightening index dropped from its level in the first quarter. Following 5 consecutive… Read More ›

How New Home Buyers Financed Their Homes in 2015

NAHB analysis of the Census Bureau Survey of Construction (SOC) data shows that non-conventional forms of financing new single-family home purchases remained elevated in 2015, accounting for more than a third of the market. Looking at new single-family homes started in 2015, the South Atlantic division was most dependent on non-conventional financing, with its share exceeding 40% of the market…. Read More ›