Saving Rate Falls to 3.5% in November
Personal income rose 0.3% in November 2025, following a 0.1% increase in October, according to the latest data from the Bureau of Economic Analysis. Gains were largely driven by higher wages and dividend income. However, income growth has cooled noticeably from peaking at a monthly increase of 1.1% in July 2022 to 0.3% now. Real […]
Holding Pattern for the Fed
The Fed paused its easing cycle at the conclusion of the January meeting of the Federal Open Market Committee, the central bank’s monetary policy body. The Fed held the short-term federal funds rate at a top rate of 3.75%, the level set in December. This marked the first policy pause since the Fed resumed easing […]
State-Level Employment Situation: December 2025
With few exceptions, year-over-year nonfarm employment levels were relatively stable across states at the end of 2025, ranging from a decline of 4.2 percent to a gain of 1.8 percent. Construction employment, however, showed considerably greater dispersion, with declines of up to 9.3 percent in some states and gains approaching 9.0 percent in others. In […]
Pool Permitting Falls Lower in 2025
After a rapid expansion of residential swimming pool and spa construction following the pandemic, permit levels in the latest monthly index for December fell to their lowest level since 2020. The Pool Construction Permit Index, created by NAHB using proprietary data from Construction Monitor, can be used to track pool and spa construction projects nationwide. […]
2025 Third Quarter State-Level GDP Data
In the third quarter of 2025, the Bureau of Economic Analysis (BEA) reported that real gross domestic product (GDP) expanded nationally, with growth recorded across all states and the District of Columbia. The increase in GDP reflected broad-based economic momentum, supported by contributions from several major industries. At the state level, real GDP growth ranged […]
House Prices Decline in Local Markets Despite National Growth
Nationally, house prices continued to rise at a modest pace in the third quarter of 2025, as mentioned in our previous quarterly house prices post. However, this national trend masks significant variation across local markets. While many metro areas continued to see house price appreciation, others experienced notable declines following several years of rapid growth. […]
Private Residential Construction Spending Edges Higher in October on Home Improvements
Private residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements. Despite this increase, total spending remained 1.3% lower than a year ago, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff […]
Single-Family Permits Cooled in the Fall
In October, single-family building permits weakened, reflecting continued caution among builders amid affordability constraints and financing challenges. In contrast, multifamily permit activity remained steady and continued to perform relatively well. Together, these trends suggest that while demand for new housing persists, builders are adjusting residential construction activity in response to evolving market conditions. Because permits […]
New Single-Family Home Size Trends: Third Quarter 2025
New single-family home size has been generally falling since 2015 as a response to declining affordability conditions. An exception occurred when new home size increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower. According […]
Third Quarter 2025 Multifamily Construction Data
According to NAHB analysis of quarterly Census data, the count of multifamily, for-rent housing starts increased during the third quarter of 2025. For the quarter, 119,000 multifamily residences started construction. Of this total, 114,000 were built-for-rent. This built-for-rent total was 31% higher than the third quarter of 2024. This marks a significant increase, and it […]
Soft Conditions for Single-Family Built-for-Rent
Single-family built-for-rent construction fell back in the third quarter of 2025, as a higher cost of financing and increased multifamily supply crowded out development. According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 18,000 single-family built-for-rent (SFBFR) starts during the third quarter of 2025. […]
Missing Middle Weakness
The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties. The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession. For the third quarter of 2025, there were 4,000 2- to 4-unit housing unit construction starts. This represents […]
December Mortgage Activity Softens Even as Rates Ease
Mortgage application activity declined in December despite a modest easing in mortgage rates. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, fell 5.3% from November on a seasonally adjusted basis, though it remained 47.1% higher than a year ago. The average contract interest rate for 30-year fixed mortgages […]
Builder Sentiment Loses Ground at Start of 2026
Builder confidence moved lower to start the year as affordability concerns continue to weigh heavily with buyers, and builders continue to contend with rising construction costs. Builder confidence in the market for newly built single-family homes fell two points to 37 in January, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market […]
Remodeling Market Sentiment Strengthens in Fourth Quarter of 2025
In the fourth quarter of 2025, the NAHB/Westlake Royal Remodeling Market Index (RMI) posted a reading of 64, increasing four points compared to the previous quarter. Most remodelers are finding reasonably strong market conditions, even with the normal seasonal slowdown during the holidays. The major headwinds the industry is experiencing continue to be rising costs and potential […]
Existing Home Sales Climb to Near 3-Year High in December
Existing home sales rose in December to the fastest pace in nearly three years, but annual sales for 2025 remained at a 30-year low as elevated home prices and mortgage rates kept buyers on the sidelines, according to the National Association of Realtors (NAR). While mortgage rates have eased from 7% seen at the start […]
Building Material Price Growth Remains Elevated in November
Residential building material prices continued to experience elevated growth, according to the latest Producer Price Index release from the Bureau of Labor Statistics. Price growth has been above 3.0% since June this year, despite continued weakness in the new residential construction market. Across building materials, metal products continue to experience price increases, while ready-mix concrete […]
New Home Sales Rise Year-Over-Year as Prices Stabilize
The new home sector has played an increasingly important role in meeting housing demand as resale inventory remains constrained in many regions. The latest data released today (and delayed because of the government shutdown in fall of 2025) indicate that new single-family home sales continue to reflect a stabilizing market after a period of heightened […]