Tag Archive for ‘housing economics’

Housing Affordability Holds Steady but Supply-Side Challenges Persist

Housing affordability held steady at its lowest level in nearly a decade, as higher home prices offset lower mortgage rates to keep the affordability rate flat in the third quarter of 2021.  In the months ahead, however, supply-chain disruptions and the prospect of higher interest rates will continue to threaten housing affordability. According to the National Association of Home Builders… Read More ›

Desire for Homeownership Cools

After hitting a low of 10% in the first quarter of 2020, the share of adults planning a home purchase within a year rose for five consecutive quarters, peaking at 17% in the second quarter of 2021.  The desire for homeownership cooled off in the third quarter, when the share slid back to 16%. Meanwhile, the share of prospective buyers… 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 ›

Builder Confidence at 13-Month Low on Higher Material Costs, Home Prices

Builder sentiment in the market for newly-built single-family homes fell five points to 75 in August, according to the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI). The index is at its lowest point since July 2020. Higher construction costs and supply shortages have led to significant price growth, which in turn has caused prospective buyers to… Read More ›