Eye On Housing
Author Archives
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Supply Constraints Hold Back May New Home Sales
After notable and expected downward revisions for prior months, May recorded a decline of 5.9% for sales of newly-constructed single family homes, according to estimates from the Census Bureau and HUD. The May seasonally adjusted annual rate (769k) was the lowest in a year, due to builders slowing sales as a consequence of higher material costs and declining availability of… Read More ›
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Single-Family Starts Steady in May
Housing production was steady in May, although permit issuance weakened as higher costs are deferring and delaying some construction projects. Overall housing starts increased 3.6% to a seasonally adjusted annual rate of 1.57 million units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The May reading of 1.57 million starts is… Read More ›
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Post-Winter Storm Uptick for Sawmill Output in March
The historic climb for lumber prices, combined with delays and higher costs for other building materials, is a significant limiting factor for home building in 2021. Despite a historically diminished level of overall housing inventory and solid demand due to low mortgage interest rates and demographics, new construction has been limited in its ability to add needed supply to the market,… Read More ›
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Rising Material Challenges, Declining Builder Sentiment
Rising material prices and supply-chain shortages resulted in builder confidence dipping to its lowest level since August 2020. 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 81 in June. Despite the monthly decline, the reading above 80 is still… Read More ›
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Count of Open Construction Jobs Near Two-Year High
The count of open construction jobs increased in April to 357,000 unfilled positions, according to data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The housing market remains hot and requires additional labor, lots and lumber and building materials to add inventory. Overall, hiring in the construction sector slowed in April, declining to a 4.5% rate. The recent… Read More ›
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Residential Construction Loan Volume Moves Higher
Ending a period of volume decline that began at the end of 2019, the volume of residential construction lending posted an increase during the first quarter of 2021. Nonetheless, overall residential construction loan volume ended the year lower due to accelerated sales growth, which reduced outstand loans at a faster rate. The volume of 1-4 unit residential construction loans made… Read More ›
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Domestic Sawmill Output Not Keeping Up with Construction
The historic climb for lumber prices, combined with delays and higher costs for other building materials, is a significant limiting factor for home building in 2021. Despite a historically low level of overall housing inventory and solid demand due to low mortgage interest rates and demographics, new construction has been unable to add additional needed supply to the market, resulting… Read More ›
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New Home Sales Decline Due to Higher Costs
After a significant downward revision for the preliminary March data, April recorded a decline of 5.9% for sales of newly-constructed single family homes, according to estimates from the Census Bureau and HUD. The April seasonally adjusted annual rate (863k) was the lowest since June 2020, with the exception of a weather-influenced February report. Residential demand continues to be supported by… Read More ›
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Multifamily Built-for-Rent Share: 96% of Starts
According to NAHB analysis of quarterly Census data, the market share of rental units of multifamily construction starts remained elevated at 96% during the first quarter of 2021. 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 1980-2002 period…. Read More ›
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Custom Home Building: 1Q21 Data
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building continues to experience flat conditions amidst strong demand and rising material challenges. There were 36,000 total custom building starts during the first quarter of the year. While this marks a 22% gain from the first quarter of 2020, that comparison is affected… Read More ›