Eye On Housing
The count of open construction jobs increased in April to 357,000 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 slowed in April, declining to a 4.5% rate. The recent… Read More ›
A post published last week discussed how record numbers of builders were reporting on broad-based shortages of building materials and products. The source of the information was the May survey for the NAHB/Wells Fargo Housing Market Index (HMI). The same survey asked the HMI panel of single-family builders how total material costs for the same house have changed over the… Read More ›
Builders and developers responding to NAHB’s Survey on Acquisition, Development & Construction (AD&C) Financing continued to report declining interest rates in the first quarter of 2021. The average effective rate (based on rate of return to the lender over the assumed life of the loan taking both the contract interest rate and initial fee into account) decreased from 7.27 to… Read More ›
A new NAHB study shows that, on average, regulations imposed by government at all levels account for $93,870 of the final price of a new single-family home built for sale. Of the $93,870, $41,330 is due to a higher price for the finished lot, attributable to regulations imposed during the lot’s development. The remaining $52,540 is the result of regulatory… Read More ›
Shortages of materials are now more widespread than at any at any time since NAHB began tracking the issue on a regular basis in the 1990s in is survey for the NAHB/Wells Fargo Housing Market Index (HMI). In response to special questions on the May 2021 HMI survey, over 90 percent of builders who buy the product in question reported… Read More ›
The historic climb for lumber prices, combined with delays and higher costs for other building materials, is a significant limiting factor for home building in 2021. Despite a historically low level of overall housing inventory and solid demand due to low mortgage interest rates and demographics, new construction has been unable to add additional needed supply to the market, resulting… Read More ›
After a significant downward revision for the preliminary March data, April recorded a decline of 5.9% for sales of newly-constructed single family homes, according to estimates from the Census Bureau and HUD. The April seasonally adjusted annual rate (863k) was the lowest since June 2020, with the exception of a weather-influenced February report. Residential demand continues to be supported by… Read More ›
According to NAHB analysis of quarterly Census data, the market share of rental units of multifamily construction starts remained elevated at 96% during the first quarter of 2021. In contrast, the historical low share of 47% was set during the third quarter of 2005, during the condo building boom. An average share of 80% was registered during the 1980-2002 period…. Read More ›
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building continues to experience flat conditions amidst strong demand and rising material challenges. There were 36,000 total custom building starts during the first quarter of the year. While this marks a 22% gain from the first quarter of 2020, that comparison is affected… Read More ›
Counter to expectations, the number of single-family homes built-for-rent (SFBFR) construction starts posted a year-over-year decline for the first quarter of 2021. The SFBFR market is a way to add single-family inventory amid concerns over housing affordability and downpayment requirements in the for-sale market, particularly during a period when people want more space and a single-family structure. Single-family built-for-rent construction… Read More ›