Tag Archive for ‘housing’

November New Home Sales Up as Interest Rates Fall Back

While new home sales received a slight bounce in November from moderating mortgage rates, the housing market continues to struggle because of ongoing supply chain disruptions, elevated construction costs, and challenging affordability conditions. Sales of newly built, single-family homes in November increased 5.8% to a 640,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of… Read More ›

Nine Percent of New Homes Are Teardowns

In 2021, 9.1 percent of new single-family homes were built in an older neighborhood on a site where a previous  structure had to be torn down and rebuilt, according to the latest Builder Practices Survey (BPS) conducted by Home Innovation Research Labs.  Another 18.5 percent were built on an infill lot in an older neighborhood.  The BPS places new homes… Read More ›

Single-Family Production Continues to Decline, Multifamily Permits Weakening

Single-family housing starts continued to fall in November, with the pace of construction down 32% since February when mortgage rates began to rise. The housing market continues to weaken because stubbornly high construction costs and elevated interest rates are harming housing affordability. And with the count of multifamily units under construction reaching a near 50-year high, multifamily permit growth is… Read More ›

Reflecting a Weakening Housing Market, Builder Confidence Declined Every Month in 2022

High mortgage rates, elevated construction costs running well above the inflation rate, and flagging consumer demand due to deteriorating affordability conditions have dragged builder sentiment down every month in 2022. Builder confidence in the market for newly built single-family homes posted its 12th straight monthly decline in December, dropping two points to 31, according to the National Association of Home… Read More ›

The Size of the Housing Shortage: 2021 Data

Reflecting the unprecedented housing shortages across the United States in the post-pandemic market, U.S. vacancy rates hit their lowest readings in decades in 2021. According to NAHB’s analysis of the 2021 American Community Survey (ACS), owner vacancy rates dropped below 0.9% and rental vacancy rates reached a new low of 5.2%, the lowest levels recorded by the ACS since the… Read More ›

Downshift for the Fed

Downshifting its pace of tightening of monetary policy, the Federal Reserve’s monetary policy committee raised the federal funds target rate by 50 basis points, increasing that target to an upper bound of 4.5%. This marked a relatively smaller increase after four previous 75 basis point hikes. The Fed has clearly communicated it will continue to tighten monetary policy however, raising… Read More ›

Builders Are Cutting Prices & Offering Incentives, But It’s Not 2008

In November of 2022, 36 percent of single-family home builders reported reducing their prices, and 59 percent were offering special sales incentives.  These percentages may seem relatively high—and in fact they have increased significantly since July of this year—but they are nowhere near as high as they were during the 2007-2008 financial crisis. Questions on sales incentives have been a… Read More ›

AD&C Balances Continue to Rise

Residential construction loan volume reached a post-Great Recession high during the third quarter of 2022, as home building activity and new home sales remained weak. Outstanding builder loan balances are rising as development debt is being held longer as new homes remain in inventory longer. Loan balances will decline in coming quarters as the development loan market becomes more costly… Read More ›

Construction Job Openings Peaked for Cycle?

The count of open, unfilled jobs for the overall economy declined in October, falling from 10.7 million open positions to 10.3 million. This represents a small decrease from a year ago (11.1 million), a sign the labor market is slowing in response to tighter monetary policy. The degree of this slowing will be critical for a potential downshift in the… Read More ›

New Home Sales Increase in October

New home sales rebounded in October despite higher mortgage rates, likely due to low existing home inventory and builders using incentives to attract buyers to the new home market. The U.S. Department of Housing and Urban Development and the U.S. Census Bureau estimated sales of newly built, single-family homes in October at a 632,000 seasonally adjusted annual pace, which is… Read More ›