Eye On Housing
Recent Posts - page 2
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Supply-Side Disruptions Push Single-Family Production Down in October
Single-family housing production lagged in October due to supply-chain effects for materials and ongoing access issues for labor and lots. Overall housing starts decreased 0.7% to a seasonally adjusted annual rate of 1.52 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The October reading of 1.52 million starts… Read More ›
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Builder Confidence Up on Strong Demand Even as Supply Side Challenges Persist
Low existing inventories and strong buyer demand helped push builder confidence higher for the third consecutive month even as supply-side challenges – including building material bottlenecks and lot and labor shortages – remain stubbornly persistent. Builder sentiment in the market for newly built single-family homes moved three points higher to 83 in November, according to the National Association of Home… Read More ›
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Record Share of NAHB Members Report Labor Shortages
Friday’s post described how, in the construction industry, job layoffs have plunged while unfilled job positions remain elevated (according to the government’s latest Job Openings and Labor Turnover report). If more evidence of a severe supply chain challenge is needed, the record percentages of NAHB members reporting labor shortages in recent surveys can provide it. Let’s turn first to the… Read More ›
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September Single-Family Permit Gains
Over the first nine months of 2021, the total number of single-family permits issued year-to-date (YTD) nationwide reached 864,184. On a year-over-year (YoY) basis, this is a 21.2% increase over the September 2020 level of 713,286. Year-to-date ending in September, single-family permits increased in all four regions. Southern region reported the strongest increase of 22.8%, followed by Northeast (+20.4%), West… Read More ›
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Construction Layoff Rate Dives
The labor market continues to tighten. In the September BLS Job Openings and Labor Turnover Survey (JOLTS) data, the national number of job quits for all sectors (4.4 million) was up 34% year-over-year as worker churn accelerates. Total national job openings stands at 10.4 million. What had been, in prior years, a challenge in certain sectors, like construction, continues as… Read More ›
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Housing Affordability Holds Steady but Supply-Side Challenges Persist
Housing affordability held steady at its lowest level in nearly a decade, as higher home prices offset lower mortgage rates to keep the affordability rate flat in the third quarter of 2021. In the months ahead, however, supply-chain disruptions and the prospect of higher interest rates will continue to threaten housing affordability. According to the National Association of Home Builders… Read More ›
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Residential Real Estate Credit Standards Ease Slightly in Third Quarter
The latest results of the Federal Reserve’s Board’s Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS), lending standards and demand for residential real estate (RRE) loans both eased slightly in the third quarter of 2021. Additionally, banks reported easier lending standards for all categories of commercial real estate financing (CRE loans), and, within CRE, stronger demand for multifamily… Read More ›
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Consumer Prices Post the Largest Gain in Three Decades
Compared to a year ago, on a not seasonally adjusted basis, consumer prices increased by 6.2% in October, the largest year-over-year gain since December 1990. Supply-chain constraints and strong consumer demand as the economy reopened have contributed to recent price increases. The Bureau of Labor Statistics (BLS) reported that the Consumer Price Index (CPI) rose by 0.9% in October on… Read More ›
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Building Materials Prices Post Record Year-To-Date Increase through October
The prices of goods used in residential construction ex-energy climbed 0.8% in October (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The increase comes on the heels of two consecutive monthly declines largely driven by steep declines in lumber and plywood prices. The price index of services inputs to residential construction… Read More ›
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Q3 2021 Consumer Credit
In the third quarter of 2021, non-real estate-secured consumer credit increased at a seasonally adjusted annual rate by 5.6%, with revolving debt1 increasing by 7.4% and nonrevolving debt2 increasing by 5.1%. Consumer credit totaled $4.4 trillion on a seasonally adjusted annual basis, with $1 trillion comprised of revolving debt and $3.4 trillion in nonrevolving debt. This outstanding level marks a total increase of… Read More ›