Eye On Housing
Author Archives
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Higher Material Costs, Interest Rates Lower Builder Sentiment
Despite high buyer traffic and strong demand, builder sentiment fell in March as rising lumber and other material prices pushed builder confidence lower. The latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) shows that builder confidence in the market for newly built single-family homes fell two points to 82 in March. Though builders continue to see… Read More ›
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Jump in Construction Job Openings in January
Job openings in construction increased in January to the highest count since the Fall of 2019 according to data from the BLS Job Openings and Labor Turnover Survey (JOLTS). Hiring in construction was strong as 2021 began. However, construction employment did decline in February as material prices increased. The JOLTS data is reported with a one-month lag, so the February… Read More ›
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New Home Sales Edge Higher in January
After a slight slowing of sales at the end of 2020, new single-family home sales edged higher in January, increasing 4.3% to a 923,000 seasonally adjusted annual rate, according to estimates from the Census Bureau and HUD. Sales exceeded construction starts by a historic margin at the end of the summer, which necessitated an increase in starts and some slowing… Read More ›
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Multifamily Condo Construction Starts Fell 28% in 2020
According to NAHB analysis of quarterly Census data, the market share of rental units of total multifamily construction starts ticked higher to near 97% during the fourth quarter of 2020. In contrast, the historical low share of 47% was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the… Read More ›
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Construction Loans End 2020 Lower
Continuing a period of volume decline that began at the end of 2019, the volume of residential construction lending posted a slight decline during the fourth quarter of 2020. Overall residential construction loan volume ended the year lower due to accelerated sales growth, which reduced outstand loans at a faster clip, and higher interest rates for AD&C financing. The volume… Read More ›
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Flat Conditions for Custom Home Building
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building ended the year 2020 flat due second quarter weakness. There were 44,000 total custom building starts during the fourth quarter of the year, equal to the fourth quarter 2019 total. Over the last four quarters, custom housing starts totaled 176,000, roughly unchanged… Read More ›
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Rebound for Townhouse Construction
According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, townhouse construction expanded to a 2.5 year high during the final quarter of 2020. As housing demand has shifted to more suburban and exurban areas and housing affordability headwinds persist, medium-density construction initially lagged. However, a strong final quarter led to roughly flat… Read More ›
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Growth Ahead for New Single-Family Home Size?
An expected impact of the virus crisis is a need for more space, as people use their homes for more purposes. And while this measure has not increased significantly yet, new home size did level off in 2020 after years of decline. According to fourth quarter 2020 data from the Census Quarterly Starts and Completions by Purpose and Design and… Read More ›
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Gains for Single-Family Built-for-Rent Construction
The number of single-family homes built-for-rent (SFBFR) construction starts posted a year-over-year increase for the fourth quarter of 2020. The SFBFR market is a way to add single-family inventory amid concerns over housing affordability and downpayment requirements in the for-sale market, particularly during a period when people want more space and a single-family structure. Single-family built-for-rent construction does differ with… Read More ›
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Construction Headwinds Pick Up in January
Housing production softened in January as rising lumber prices continue to affect the housing industry. Overall housing starts decreased 6% percent to a seasonally adjusted annual rate of 1.58 million units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The January reading of 1.58 million starts is the number of housing… Read More ›