Tag Archive for ‘housing economics’

Remodelers’ Average Net Profits are Down, NAHB Study Shows

Residential remodeling companies, just like any other private enterprise in a capitalist economy, exist to satisfy the demand of consumers for specific products or services in exchange for a rate of profit commensurate with the risk taken.  Companies control when they enter or exit the industry, but their financial performance is intrinsically linked to external factors, such as the number… Read More ›

Housing Affordability Hits Record Low but Turning Point Lies Ahead

Mirroring a steep rise in mortgage rates that began in the early part of 2022 and coupled with ongoing building material supply chain bottlenecks that increased construction costs, housing affordability posted three consecutive quarterly declines in 2022 and now stands at its lowest level since the National Association of Home Builders (NAHB) began tracking it on a consistent basis in… Read More ›

Housing Affordability Goes South

Buyers’ outlook for housing affordability took a sharp negative turn in the final quarter of 2022, when a record high of 87% reported being able to afford fewer than 50% of the homes for-sale in their markets.  The remaining 13% can afford the majority of homes available, less than half the 31% who could in the third quarter. Affordability expectations… Read More ›

Buyers Expect Less Housing Availability

After a brief respite earlier in 2022, buyers’ expectations of housing availability soured again at the end of the year.  In the final quarter of 2022, the share of buyers who expect the home search to get easier in the months ahead dropped to 24%, down from 37% in the third quarter. In contrast, 66% expect the search to get… Read More ›

Fewer Adults are Planning a Home Purchase

The share of adults planning a home purchase in the next 12 months dropped to 13% in the final quarter of 2022, down from 15% in the previous quarter.  The drop is not surprising, given that housing affordability worsened during this period, as mortgage interest rates surpassed 7.0% and reached levels not seen in nearly 20 years. In the third… Read More ›

Nearly Two-Thirds of Homes Started in 2021 are in Community Associations

According to data from the Census Bureau’s Survey of Construction (SOC), 65.5 percent of single-family homes started in 2021 were built within a community or homeowner’s association. Since the re-design of the SOC in 2009, this was the second highest percentage for new homes started with an association. The Census Bureau defines community or homeowner’s associations as “formal legal entities… Read More ›

Custom Home Building Share Declines Slightly

According to data from the Census Bureau’s Survey of Construction (SOC), custom homes accounted for 17.6 percent of new single-family homes started—down slightly from the 17.8 percent recorded in 2020 and 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… Read More ›