Eye On Housing
Recent Posts - page 2
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The Aging Housing Stock
The median age of owner-occupied homes is 39 years, according to the latest data from the 2019 American Community Survey. Compared to a median age of 31 years in 2005, the U.S. owner-occupied housing stock is aging gradually. The residential construction continues to fall behind in the number of new homes built especially after the Great Recession. This aging housing… Read More ›
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Builders Report 26 Percent Increase in Material Prices
A post published last week discussed how record numbers of builders were reporting on broad-based shortages of building materials and products. The source of the information was the May survey for the NAHB/Wells Fargo Housing Market Index (HMI). The same survey asked the HMI panel of single-family builders how total material costs for the same house have changed over the… Read More ›
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Private Residential Spending Rises Modestly in April
NAHB analysis of Census Construction Spending data shows that total private residential construction spending rose 1.0% in April to a seasonally adjusted annual rate of $729.2 billion. Total private residential construction spending was 29.7% higher than a year ago. The monthly gains are largely attributed to the strong growth of spending on multifamily and single family construction. Multifamily construction spending… Read More ›
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Home Building At Fastest Pace in Areas With Shortest Commute Times
Home building across the nation expanded the fastest in places with the shortest commute times, according to the quarterly National Association of Home Builders (NAHB) Home Building Geography Index (HBGI). The HBGI also shows the suburban shift in new home construction to low density, low cost markets stemming largely from the COVID-19 pandemic and first reported in the second quarter… Read More ›
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Rates on Development & Construction Loans Continue to Decline.
Builders and developers responding to NAHB’s Survey on Acquisition, Development & Construction (AD&C) Financing continued to report declining interest rates in the first quarter of 2021. The average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) decreased from 7.27 to… Read More ›
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Regulation Now Accounts for $93,870 of the Average New Home Price
A new NAHB study shows that, on average, regulations imposed by government at all levels account for $93,870 of the final price of a new single-family home built for sale. Of the $93,870, $41,330 is due to a higher price for the finished lot, attributable to regulations imposed during the lot’s development. The remaining $52,540 is the result of regulatory… Read More ›
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Record Numbers of Builders Report Material Shortages
Shortages of materials are now more widespread than at any at any time since NAHB began tracking the issue on a regular basis in the 1990s in is survey for the NAHB/Wells Fargo Housing Market Index (HMI). In response to special questions on the May 2021 HMI survey, over 90 percent of builders who buy the product in question reported… Read More ›
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Median Age of Construction Workforce
NAHB analysis of the most recent 2019 American Community Survey (ACS) data reveals that the median age of construction workers is 41, the same as a typical worker in the national labor force. While the residential construction has been adding jobs during the pandemic, access to skilled labor is still a business challenge in 2021. The median age of construction… 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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Home Prices Soar in March
In March, national home prices continued to rise at a fast — and unsustainable rate — pushed by strong demand and low housing inventory. Home price appreciation accelerated in most metro areas. The S&P CoreLogic Case-Shiller U.S. National Home Price Index, reported by S&P Dow Jones Indices, rose at a seasonally adjusted annual growth rate of 20.0% in March, following… Read More ›