Eye On Housing
The Federal Reserve held the federal funds rate at the current 0% to 0.25% range as it continues to deploy policy tools to underwrite an emerging recovery for the U.S. economy. And it will continue to provide such policy support until the crisis has passed and the economy has recovered. The Fed noted that it will continue its quantitative easing… Read More ›
Analysis of the American Community Survey (ACS) suggests that renters and young adults under the age of 34 are likely to face higher prolonged unemployment risks as a result of the coronavirus pandemic hitting the labor market. The labor market risks are also uneven across states, with state economies heavily reliant on leisure, entertainment, retail and personal services being most… Read More ›
Year-over-year (YoY), total nonfarm employment fell by 19.4 million jobs on a seasonally adjusted basis (SA), or -12.9% from April 2019 to April 2020. During this time, total nonfarm employment decreased across all the regions. The Northeast declined by 18.2%, the Midwest by 14.5%, the Western region by 12.6% and the South by 10.7%. According to the Bureau of Labor… Read More ›
After weakening in March, the volume of new home sales came in much better than expected in April. Due to economic challenges associated with COVID-19, NAHB was forecasting an additional sales decline in April. However, new home sales estimates from the Census Bureau reveal relatively flat conditions compared to March. The Census estimates reported a 623,000 seasonally adjusted annual rate… Read More ›
An elevated rental share of multifamily construction is holding typical apartment size below levels seen during the pre-Great Recession period. According to first quarter 2020 data, the average per unit square footage of multifamily housing construction starts was 1,086, off from the post-recession high set at the start of 2015 (1,247 square feet). The median was 1,031 square feet for… Read More ›
New single-family home size has trended lower over the last four years as builders sought to add additional entry-level supply to an inventory-starved housing market. However, the coronavirus and the recession of 2020 potentially reset those trends, as evidence grows that households will seek more space for home offices, home gyms, and other purposes. According to first quarter 2020 data… Read More ›
The number of single-family homes built-for-rent (SFBFR) posted a small year-over-year increase for the first quarter of 2020 despite otherwise challenging market conditions. The SFBFR market has received attention as a means to add single-family inventory amid concerns over housing affordability and downpayment requirements in the for-sale market, particularly during a period involving elevated unemployment and weak wage growth. Single-family… Read More ›
According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, townhouse construction experienced was flat on a year-over-year basis during the first quarter of 2020. Over the past four quarters, single-family attached housing experienced a small decline, which matches data in the NAHB HBGI. Those estimates reveal reduced construction activity for large metro… Read More ›
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building posted a small increase during the first three months of the year, supported by low interest rates and unseasonably mild weather in January and February. While housing construction starts declined in March, and considerably more in April, on net the first quarter… Read More ›
As indicated by the NAHB/Wells Fargo Housing Market Index (HMI), housing starts retreated in April due to the economic consequences of government-imposed lockdowns associated with virus mitigation. Single-family starts were 25% lower in April, at a seasonally adjusted annual rate of 650,000. Since the peak rate in February, the pace of single-family construction has declined 37%. The April pace was… Read More ›