Eye On Housing
Author Archives
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New Home Sales Jump in May
New home sales jumped in May, as housing demand was supported by low interest rates, a renewed household focus on housing, and rising demand in lower-density markets. Census and HUD estimated new home sales in May at a 676,000 seasonally adjusted annual pace, a 17% gain over April. However, as we noted last month, the April data was downwardly revised… Read More ›
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Gain for Single-Family Permits Points to Building Growth
Single-family housing starts were flat in May, albeit off an upwardly revised estimate for construction in April. Single-family starts in May were estimated by Census/HUD at a 675,000 seasonally adjusted annual rate, after an revised estimate of 674,000 for April. However, the turning point for the market was found in the permits data. Consistent with recent gains in the NAHB/Wells… Read More ›
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AD&C Loan Volume Expands During a Tough Quarter
Reversing a quarterly decline during the final quarter of 2019, the volume of residential construction lending posted a slight gain during the first quarter of 2020. This was prompted by the strong start for home construction in the early months of the year. The volume of 1-4 unit residential construction loans made by FDIC-insured institutions increased 2% after a 0.7%… Read More ›
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Builder Confidence Surges in June
In a sign that housing stands poised to lead a post-pandemic economic recovery, builder confidence in the market for newly-built single-family homes jumped 21 points to 58 in June, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). Any reading above 50 indicates a positive market. As the nation reopens, housing is well-positioned to lead… Read More ›
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Federal Reserve: Accomodative Monetary Policy Will Continue for Years
The Federal Reserve held the federal funds rate at the current 0% to 0.25% range as it continues to deploy policy tools to underwrite an emerging recovery for the U.S. economy. And it will continue to provide such policy support until the crisis has passed and the economy has recovered. The Fed noted that it will continue its quantitative easing… Read More ›
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Backward-Looking April Construction Data: Layoffs Surged
Backward-looking data from the Job Openings Labor Turnover Survey (JOLTS) detail the sudden stop associated with the coronavirus and its impacts on the construction labor market. According to the separate BLS labor market report, there were 422,000 jobs lost in the residential construction sector alone in April, followed by a more promising gain of 226,000 in May. Next month’s JOLTS… Read More ›
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New Home Sales Overperform in April
After weakening in March, the volume of new home sales came in much better than expected in April. Due to economic challenges associated with COVID-19, NAHB was forecasting an additional sales decline in April. However, new home sales estimates from the Census Bureau reveal relatively flat conditions compared to March. The Census estimates reported a 623,000 seasonally adjusted annual rate… Read More ›
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Multifamily Built-for-Rent: 94% Market Share During 1Q20
An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to first quarter 2020 data, the average per unit square footage of multifamily housing construction starts was 1,086, off from the post-recession high set at the start of 2015 (1,247 square feet). The median was 1,031 square feet for… Read More ›
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New Single-Family Home Size Declines Ending?
New single-family home size has trended lower over the last four years as builders sought to add additional entry-level supply to an inventory-starved housing market. However, the coronavirus and the recession of 2020 potentially reset those trends, as evidence grows that households will seek more space for home offices, home gyms, and other purposes. According to first quarter 2020 data… Read More ›
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Gains Expected for Single-Family Built-for-Rent Construction
The number of single-family homes built-for-rent (SFBFR) posted a small year-over-year increase for the first quarter of 2020 despite otherwise challenging market conditions. 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 involving elevated unemployment and weak wage growth. Single-family… Read More ›