Eye On Housing
Author Archives
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Home Building: Sales Outpacing Starts by a Historic Margin
After a sharp decline in the spring, home building has staged a dramatic rebound. In fact, supported by low mortgage rates, an evolving geography of housing preferences, and favorable demographic tailwinds, housing demand has improved so quickly that the current difference between the pace of newly-built single-family home sales and for-sale single-family construction starts has reached a historic level. The… Read More ›
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Construction Labor Market Adjustment Continues
The shock and fallout to the construction labor market from the recession of 2020 continued in early Fall as housing activity strengthened due to low interest rates. After an accelerated pace of layoffs in March and April, construction hiring roared back in May and June, per data from the BLS Job Openings and Labor Turnover Survey (JOLTS). More recent July… Read More ›
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How Many Homes are Concrete-Framed?
We know lumber prices are up more than 170% since mid-April as of mid-September. As housing has rebounded, the lack of lumber has materialized as a key weak spot for housing supply. With that in mind, what’s the market share of alternative framing methods? For better or worse, wood framing remains the dominant construction method for single-family homes in the… Read More ›
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Single-Family Starts Expand in August
Single-family starts showed continued growth in August but overall housing production fell 5.1 percent to a seasonally adjusted annual rate of 1.42 million units due to a double-digit percentage decline in multifamily production, according to data from the U.S. Housing and Urban Development and Commerce Departments. The pace of single-family starts in August was the highest production rate since February…. Read More ›
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Builder Confidence Soars to an All-Time High, Lumber Risks Remain
In a strong signal that housing is leading the economic recovery, builder confidence in the market for newly-built single-family homes increased five points to hit an all-time high of 83 in September, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). The previous highest reading of 78 in the 35-year history of the series was set last month and… Read More ›
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Construction Job Openings Rise in July as Recovery Advances
After an accelerated pace of layoffs in March and April, construction hiring roared back in May, increasing the count of open jobs in July per data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The rebound for construction is concentrated in the residential building sector. The pace of construction rehiring increased the open jobs rate to 4.4% in… Read More ›
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Construction Loan Volume Contracts During 2Q20
Continuing a period of weakness that began at the end of 2019, the volume of residential construction lending posted a slight decline during the second quarter of 2020. This decline corresponded with a significant drop for the NAHB/Wells Fargo Housing Market Index and 24% decline for single-family starts during the quarter. The volume of 1-4 unit residential construction loans made… Read More ›
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Multifamily Family Built-for-Rent Share Reaches New High
According to NAHB analysis of quarterly Census data, the market share of rental multifamily construction starts increased to 96% during the second 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 1980-2002 period. During the second… Read More ›
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New Home Sales Surge in July
New single-family home sales surged in July, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs. Census and HUD estimated new home sales in July at a 901,000 seasonally adjusted annual pace, an approximate 14% gain over June and the strongest… Read More ›
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Single-Family Built-for-Rent Construction Down in 2Q20
The number of single-family homes built-for-rent (SFBFR) posted a small year-over-year decline for the second quarter of 2020. The SFBFR market has received attention as a means to add single-family inventory amid concerns over housing affordability and downpayment requirements in the for-sale market, particularly during a period of double-digit unemployment and weak wage growth. Single-family built-for-rent construction does differ in… Read More ›