Eye On Housing
Federal Reserve and Housing: No Taper Talk Yet
Today’s Federal Open Market Committee announcement did not provide an explicit reference to an expected tapering of purchases of Treasury ($80 billion a month) and mortgage-backed ($40 billion a month) securities. In addition, as part of its ongoing accommodative policy stance, the Fed held its benchmark target rate near zero percent. In Chairman Powell’s press conference remarks, he stated, “The… Read More ›
Recent Posts
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Perceptions of Housing Affordability Worsen
In the final quarter of 2019, a series-high of 82% of prospective buyers could afford less than half the homes available in their markets. The share went on to decline throughout 2020 (i.e. affordability perceptions improved), reaching 63% by the final quarter of that year. But affordability expectations have worsened recently. In the first and second quarters of 2021, the… Read More ›
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Second Quarter of 2021 Homeownership Rate at 65.4%
The Census Bureau’s Housing Vacancy Survey (CPS/HVS) reported the U.S. homeownership rate declined to 65.4% in the second quarter of 2021. Compared to prior reports, the data was affected less significantly by the pandemic, since in-person interviews were back in 99% of the sample area. The national homeowner vacancy rate stayed at a record low of 0.9%, while the rental… Read More ›
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Buyers’ Perceptions of Housing Inventory Deteriorate
In the first quarter of 2018, the starting point of the Housing Trends Report (HTR), only 16% of buyers expected easier availability for a home in the months ahead. The share soared to 36% by the final quarter of 2020 (during the COVID-19 pandemic), but then went on to decline to 33% and 28%, respectively, in the first two quarters… Read More ›
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New Home Sales Slow in June
As supply-side challenges continue, June recorded a decline of 6.6% for sales of newly-constructed single family homes, according to estimates from the Census Bureau and HUD. The June seasonally adjusted annual rate (676K) was the lowest since April 2020, due to builders slowing sales as a consequence of higher material costs and declining availability of labor, material and lots. Higher… Read More ›
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Have High Prices Reduced New Construction Interest?
The share of prospective home buyers looking to buy a newly-built home peaked at 42% in the fourth quarter of 2020, before falling to 38% and 33%, respectively, in the first two quarters of 2021. The drop is most likely the direct result of strong gains in new home prices in 2021, which have been driven by double-digit growth in… Read More ›
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Modular and Other Non-Site Built Housing In 2020
The total market share of non-site built single-family homes (modular and panelized) was at 3% of single-family completions in 2020, according to Census Bureau Survey of Construction data and NAHB analysis. This share is expected to rise moderately in 2021 and in the years ahead, due to the ongoing labor shortage in the residential construction sector and the need to lift labor… Read More ›
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Existing Home Sales Stabilizing in June
After four months of declines, existing home sales stabilized in June as housing inventory modestly improved, according to the National Association of Realtors (NAR). However, the median existing home price in June remained elevated and was the second-highest on record. Total existing home sales, including single-family homes, townhomes, condominiums and co-ops, increased 1.4% to a seasonally adjusted annual rate of… Read More ›
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Most Common Exteriors On New Homes are Stucco and Vinyl in 2020
According to the data from the Census Bureau’s Survey of Construction (SOC), stucco was the most common principal exterior material on new single-family homes started in 2020 (28 percent), followed by Vinyl siding (26 percent), fiber cement siding (such as Hardiplank or Hardiboard (21 percent), brick or brick veneer (19 percent). Far smaller shares of single-family homes started last year had wood… Read More ›
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Desire for Homeownership Continues to Increase
Seventeen percent of American adults are considering the purchase of a home within a year, according to NAHB’s Housing Trends Report (HTR) for the second quarter of 2021. The share (now seasonally-adjusted*) has increased for five consecutive quarters, after hitting a series low of 10% in the first quarter of 2020. The upward trend is clear evidence of Americans’ growing… Read More ›