Tag Archive for ‘home building’

May Single-Family Permit Gains

Over the five months of 2021, the total number of single-family permits issued year-to-date (YTD) nationwide reached 483,878. On a year-over-year (YoY) basis, this is a 38.7% increase over the May 2020 level of 348,898. Year-to-date ending in May, single-family permits increased in all four regions. The Northeast region reported the strongest increase of 48.8%, followed by the Midwest (+45.6%),… Read More ›

Remodeling Industry Confidence Improves Year over Year

The NAHB/Royal Building Products Remodeling Market Index (RMI) increased for the second quarter, posting a reading of 87, up 14 points from the second quarter of 2020.  The increase in the index is a sign of improving remodelers’ confidence in their markets, for projects of all sizes. The RMI is an average of two major component indices: the Current Conditions… Read More ›

Most Homebuilders are Small Businesses

New NAHB research shows that despite declining self-employment rates and the rising top builder market share, residential construction remains the industry of independent entrepreneurs with close to 80% of homebuilders and specialty trade contractor firms being self-employed independent contractors. Even among firms with paid employees, the industry continues to be dominated by small businesses, with 63% of homebuilders and two… Read More ›

Why Builders Still Use Lumber Despite the Price Hikes

Although lumber prices have declined somewhat recently, this follows a period of record increases that started in mid-2020 and have left prices at historic highs.  In a recent NAHB survey, 94 percent of builders reported a shortage of framing lumber.  Despite this, as Tuesday’s post showed, wood framing remains the dominant construction method for single-family homes in the U.S., accounting… Read More ›

Crosswinds for Construction Job Openings

The count of open construction jobs declined in May to 299,000 unfilled positions, according to data from the BLS Job Openings and Labor Turnover Survey (JOLTS). The housing market remains hot and requires additional labor, lots and lumber and building materials to add inventory. Overall, hiring in the construction sector remained strong in May, ticking down to a 4.2% rate…. Read More ›

Did the Share of Concrete-Framed Homes Rise in 2020?

Higher prices and limited availability of softwood lumber has been a key issue for housing and the overall inflation situation for the U.S. economy. With this in mind, did higher lumber prices in 2020 result in higher market shares for non-wood framed single-family homes? Wood framing remains the dominant construction method for single-family homes in the U.S., according to NAHB… Read More ›

New Home Prices Squeeze Buyers Out at the Low End

Recent Census data, combined with NAHB survey results, illustrate the way in which home buyers in the lower one-fourth of the market have been squeezed entirely out of the market for new construction, and forced to look exclusively in the stock of existing homes—where the inventory of homes available for sale remains in a historically low range (at a 2.5-month… Read More ›

Supply Constraints Hold Back May New Home Sales

After notable and expected downward revisions for prior months, May recorded a decline of 5.9% for sales of newly-constructed single family homes, according to estimates from the Census Bureau and HUD. The May seasonally adjusted annual rate (769k) was the lowest in a year, due to builders slowing sales as a consequence of higher material costs and declining availability of… Read More ›

Single-Family Starts Steady in May

Housing production was steady in May, although permit issuance weakened as higher costs are deferring and delaying some construction projects. Overall housing starts increased 3.6% to a seasonally adjusted annual rate of 1.57 million units, according to data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The May reading of 1.57 million starts is… Read More ›