Tag Archive for ‘economics’

Uptick for New Home Sales in August

After a prior cooling trend for the volume of new home sales, sales contracts increased 1.5% in August according to estimates from the Census Bureau and HUD. The August seasonally adjusted annual rate (740,000) was 24% lower than a year ago, when an unsustainable rebound took hold in the market. Higher prices have also affected housing affordability, with new home… Read More ›

Construction Reversal: Single-Family, Multifamily Units Under Construction

A reversal is taking place in the construction pipeline. Since early 2013, there have been consistently more multifamily units (residences within 2+ unit properties) under construction relative to single-family homes. This was due to multifamily construction recovering more quickly in the years after the Great Recession, as well as years of underbuilding in the single-family sector. However, as of July,… Read More ›

Federal Reserve: Closer to Taper

The Federal Reserve has been supporting the housing market during the virus crisis, the 2020 recession, and the subsequent, ongoing recovery via asset-backed purchases (among other tools), including $40 billion a month of mortgage-backed security (MBS) purchases. These MBS purchases have held interest rates lower than they otherwise would have been. Today, the Fed moved closer to announcing a tapering… Read More ›

Employment Situation in August: State-Level Analysis

Nonfarm payroll employment increased in 31 states in August compared to the previous month while 19 states and the District of Columbia lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased at a slower rate by 235,000 in August, following an upwardly revised increase of 1,053,000 jobs in July. On a month-over-month basis, employment… Read More ›

Builder Confidence Steadies as Material and Labor Challenges Persist

Builder confidence inched up in September on lower lumber prices and strong housing demand, even as the housing sector continues to grapple with building material supply chain issues and labor challenges. Ending a three-month decline, builder sentiment in the market for newly built single-family homes edged up one point to 76 in September, according to the National Association of Home… Read More ›

Custom Home Building Share Declines

According to data from the Census Bureau’s Survey of Construction (SOC), the custom home share decreased to 17.8 percent of all single-family homes started in 2020—the lowest the annual custom home share has been since the 2005 re-design of the SOC.  The custom home market consists of contractor-built and owner-built houses—homes built one at a time for owner occupancy on… Read More ›

Two-Thirds of Homes Started in 2020 are in Community Associations

According to data from the Census Bureau’s Survey of Construction (SOC), 67.1 percent of single-family homes started in 2020 were built within a community or homeowner’s association. This is a record high for the association percentage since the re-design of the SOC in 2009. The Census Bureau defines community or homeowner’s associations as “formal legal entities created to maintain common… Read More ›

July Construction Job Openings

In the July labor market data, job openings for the overall economy increased to 10.9 million open positions. What had been a challenge in certain sectors, like construction, continues as a broad labor access issue as businesses seek workers as the economy reopens. The count of open construction jobs weakened in July to 321,000 unfilled positions, according to data from… Read More ›

Share of New Homes with Porches Back Over 65 Percent

Of the roughly 990,000 single-family homes started in 2020, 65.3 percent came with porches, according to NAHB tabulation of data from the Survey of Construction (SOC, conducted by the U.S. Census Bureau with partial funding from the Department of Housing and Urban Development). This marks the third time the share of single-family homes with porches has broken above the 65 percent barrier.  The… Read More ›

Rates Continue to Decline on Most Types of AD&C Loans

In the second quarter of 2021, interest rates on three of the four categories of loans tracked in NAHB’s Survey on Acquisition, Development & Construction (AD&C) Financing continued the downward trend that has prevailed since the third quarter of last year.  The average effective rate (based on  rate of return to the lender over the assumed life of the loan… Read More ›