Tag Archive for ‘home building’

What Do Vacancy Rates Tell Us about the Shortage of Housing?

Vacancy rates are one of the key statistics NAHB Economics tracks to judge the health and direction of the housing market. The currently low homeowner and rental vacancy rates are typically interpreted as a sign of tight housing markets, with lower vacancy rates signaling a greater housing shortage. NAHB’s analysis of the latest 2017 ACS vacancy data highlights the metropolitan… Read More ›

Construction Job Openings Jump in December

Despite the housing-focused slowdown during the second half of 2018, the count of unfilled jobs in the construction sector surged in December. According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs increased to a cycle high of 382,000 in December. This is significantly higher than the December 2017 estimate of… Read More ›

Permit Growth Flat in November

Over the first eleven months of 2018, the total number of single-family permits issued year-to-date (YTD) nationwide reached 799,679. On a year-over-year basis, this is a 5.1% increase over the November 2017 level of 761,229. The preliminary results from the New Residential Construction Survey are similar, year-to-date single-family permits over the first eleven months of 2018 was, 800,000 which is… Read More ›

Unexpected Gain for New Home Sales in November

Data for November indicated a surprise gain for the seasonally adjusted annual rate of new single-family home sales. The data was delayed due to the partial government shutdown. Survey data, including builder confidence, suggest December estimates, when published, will show market weakness however. Contracts for new, single-family home sales increased almost 17% to a 657,000 seasonally adjusted annual rate according to… Read More ›

Fed Pursues Patience

As expected, the Federal Reserve’s monetary policy body, the Federal Open Market Committee, unanimously agreed to hold steady the federal funds top rate at 2.5%. The Fed’s January statement was consistent with recent policymakers’ comments suggesting a more flexible stance toward monetary policy at the end of last year and the start of 2019. In particular, the statement indicated that… Read More ›

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 ›

Lower Interest Rates Stabilize Builder Confidence

Buoyed by falling mortgage rates, builder confidence in the market for newly-built single-family homes rose two points to 58 in January on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The gradual decline in mortgage rates in recent weeks helped to sustain builder sentiment. Low unemployment, solid job growth and favorable demographics should support housing demand in… Read More ›

Construction Job Openings Decline in November

The count of unfilled jobs in the construction sector decreased in November, as building activity declined with higher interest rates at the end of 2018. According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs fell to 278,000 in November. The October estimate was revised up to a cycle… Read More ›

Builder Confidence Drops Four Points Amid Concerns Over Housing Affordability

Builder confidence in the market for newly-built single-family homes fell four points to 56 in December on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) as concerns over housing affordability persist. Although this is the lowest HMI reading since May 2015, builder sentiment remains in positive territory. Builders report that consumer demand exists, but customers are hesitating… Read More ›

Custom Home Building Annual Share

According to data from the Census Bureau’s Survey of Construction (SOC), the custom home share declined to 20 percent of all single family homes started in 2017—lowest since mid-2000. Contractor-built or owner-built houses – that together make up the custom home market – are built one at a time for owner occupancy on owner’s land with either the owner or… Read More ›