Tag Archive for ‘housing economics’

Government Issues New Definitions for Metropolitan Statistical Areas

The Office of Management and Budget (OMB) issued new definitions for some of the nation’s Metropolitan Statistical Areas (MSAs) and Metropolitan Divisions in 2018.  In this context, the definition of a metro area is simply the list of counties(y) that officially belong to that metro, grouped together based on commuting patterns. Larger MSAs, such as New York or Washington DC, are… Read More ›

Builders’ Profit Margins Continue to (Slowly) Increase

Typically, one of the best-kept secrets in a private company is the share of total revenue that stays in the company after paying all operating costs and expenses. For a number of personal, business, or strategic reasons, that number – also known as net profit margin – tends to remain the purview of owner(s) and accountants.  Despite these company-specific realities,… Read More ›

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 ›

Housing Affordability Holds Steady at a 10-Year Low in the Fourth Quarter

A modest increase in interest rates offset a slight decline in home prices to keep housing affordability essentially level in the fourth quarter of 2018 and still hovering at a 10-year low, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). In all, 56.6 percent of new and existing homes sold between the beginning of… Read More ›

Home Buyers’ Perceptions on Affordability Are Largely Unchanged

In addition to analyzing buyers’ perceptions about housing availability, the quarterly Housing Trends Report (HTR) also explores perceptions about housing affordability. The poll asks prospective home buyers to estimate the share of homes available in their markets they believe they can afford. In the final quarter of 2018, three out of every four buyers (76%) estimate they can afford fewer than… Read More ›