Eye On Housing
Availability of new loans for acquisition, development, and construction (AD&C) has finally started to improve slightly, according to NAHB’s survey on AD&C financing for the third quarter of 2012. The overall net bank tightening index calculated from the AD&C survey dropped from +6.0 in the second quarter down to -4.3. The way the index is constructed, negative numbers indicate easing… Read More ›
Tag Archive for ‘construction’
Confidence in Multifamily Production Mostly Up in the Third Quarter, with Some Weakness in Low-Rent
The Multifamily Production Index (MPI), released by the National Association of Home Builders (NAHB), remained fairly steady in the third quarter of 2012 at 52—the third straight quarter the index has been over 50. The MPI measures builder and developer sentiment about conditions for apartment and condominium construction, and is are scaled so that any number over 50 means more… Read More ›
Production of New Apartments: Upward Trend Continues
In October, the previous month’s upward trend in multifamily production continued, as starts in buildings with five or more apartments came in at a (seasonally adjusted annual) rate of 285,000. Although the line isn’t completely solid, buildings with at least five apartments are generally a reasonable way to draw a distinction between smaller “mom and pop” operations and the province… Read More ›
Sources of Small Business Financing in the Construction Sector
According to recently-published data from the Census Bureau, businesses in the construction sector depend on multiple sources of capital for financing start ups and expansion plans, especially sources that are closely connected to the owner’s (or owners’) assets. Furthermore, the data show that construction sector business owners tend to work long hours in order to keep their enterprises successful. The… Read More ›
Apartment Production Numbers Hit 4-Year Highs in September
In September, the (seasonally adjusted) annual rate of starts in buildings with five or more apartments was 260,000, according to the latest release from the Census Bureau’s Manufacturing and Construction Division. This is up 25 percent from August, and the highest the five-plus starts rate has been since September of 2008. To illustrate how far the market has come from the… Read More ›
Apartment Production Up Strongly Year Over Year
The Census Bureau’s preliminary estimate for starts in buildings with five or more apartments in July came in at 229,000 units (at a seasonally adjusted annual rate), up 9.6 percent from the revised figure for June (revisions to the May and June numbers were minor). The 3-month moving average has been very stable, hovering between 205,000 and 210,000 for the past… Read More ›
JOLTS Data: Growing Weakness for the Job Market
May data from the Job Openings and Labor Turnover Survey (JOLTS) confirm an ongoing slowdown in the labor market, with net hiring for the construction sector (residential and nonresidential) turning negative year-to-date for 2012. For the economy as a whole, the May JOLTS data reveal that hiring rates increased to 3.3%, one of the few pieces of good news in the report. The job openings rate (the… Read More ›
Homebuilders Struggle to Add to Payrolls
Starts of new single-family homes have jumped approximately 26% since May 2011 (and more than 46% since bottoming out in early 2009). Unfortunately, the rebound in starts does not appear to have bolstered job creation within the residential construction sector as payrolls have inched 1% higher in the past year. The homebuilding industry as a whole, which includes building contractors… Read More ›
Credit Conditions for Builders May Be Stabilizing, But Remain Tight
After more than five years of persistent tightening, NAHB’s survey on Acquisition Development & Construction (AD&C) financing finally shows conditions stabilizing somewhat in the first quarter of 2012. After such a protracted period of decline, however, the stability comes at a very low level of credit availabity. The NAHB survey results remain somewhat at odds with a similar net tightening… Read More ›
AD&C Lending May Enter a New Phase Soon
After a soft patch in late February and March, recent economic and housing data point to improvement in housing market conditions. For example: The NAHB/Wells Fargo Housing Market Index was up 5 points in April, the highest level in five years The NAHB/Wells Fargo Housing Opportunity Index, a measure of home buying affordability, is at an all time high Total… Read More ›