Eye On Housing
Jack Rutherford served as an intern for the NAHB Economics Group during the summer of 2020. He authored the following post. COVID-19 Pandemic Impact on Global Construction and Housing Sectors The impact of COVID-19 on the home building industry is a key concern for most, if not all, countries. There are common vulnerabilities in the global home building industry that… Read More ›
Tag Archive for ‘housing’
Construction Loan Volume Contracts During 2Q20
Continuing a period of weakness that began at the end of 2019, the volume of residential construction lending posted a slight decline during the second quarter of 2020. This decline corresponded with a significant drop for the NAHB/Wells Fargo Housing Market Index and 24% decline for single-family starts during the quarter. The volume of 1-4 unit residential construction loans made… Read More ›
Top Products Used in New Residential Construction
In a recent article, NAHB analysis of government data found that new single-family and multifamily construction used a total of roughly $94.93 billion in building products in 2019. Although the vast majority of the $94.93 billion was produced domestically, supporting jobs in the U.S. manufacturing sector, about 6.4 percent ($6.12 billion) was imported from other countries. It may seem a… Read More ›
Multifamily Family Built-for-Rent Share Reaches New High
According to NAHB analysis of quarterly Census data, the market share of rental multifamily construction starts increased to 96% during the second quarter of 2020. 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. During the second… Read More ›
New Home Sales Surge in July
New single-family home sales surged in July, as housing demand was supported by low interest rates, a renewed consumer focus on the importance of housing, and rising demand in lower-density markets like suburbs and exurbs. Census and HUD estimated new home sales in July at a 901,000 seasonally adjusted annual pace, an approximate 14% gain over June and the strongest… Read More ›
Single-Family Built-for-Rent Construction Down in 2Q20
The number of single-family homes built-for-rent (SFBFR) posted a small year-over-year decline for the second quarter of 2020. The SFBFR market has received attention as a means to add single-family inventory amid concerns over housing affordability and downpayment requirements in the for-sale market, particularly during a period of double-digit unemployment and weak wage growth. Single-family built-for-rent construction does differ in… Read More ›
Average New Home Price Now $14,000 Higher Due to Lumber
(Note: lumber pricing continues to rise, so these numbers have been surpassed. See this post for an estimate updated on August 22 with a $16,000 impact.) According to NAHB’s standard estimates of lumber used to build the average home, the recent spike in softwood lumber prices has caused the price of an average new single-family home to increase by $14,116… Read More ›
New Single-Family Home Size Leveling Off?
New single-family home size trended lower during the second quarter 2020 at the beginning of what we are forecasting will be a pivot to larger home size over the next two years. According to second quarter 2020 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area ticked down to… Read More ›
Custom Home Building Outperformed the Market During 2Q20
NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building performed better than the overall building market during the challenging second quarter of 2020. This relative outperformance is at odds with the conventional narrative that spec home building saw outsized gains during the April to June time period. There were 45,000… Read More ›
Housing Starts Gain Ground in July
Single-family housing permits and starts expanded in July as housing demand and construction remains a bright spot for the overall economy. Demand is being supported by low interest rates and a renewed focus on the importance of home amid the virus crisis. Single-family starts in July were estimated by Census/HUD at a 940,000 seasonally adjusted annual rate, after a revised… Read More ›