Eye On Housing - A Blog from NAHB

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National Association of Home Builders Discusses Economics and Housing Policy
Updated: 1 hour 11 sec ago

Existing Sales Up 2.0% in October

Tue, 11/21/2017 - 11:22
October existing sales increased 2.0%, and the first-time buyer share increased to 32% of sales. The National Association of Realtors projected that Texas and Florida sales are now expected to completely bounce back by the end of the year from declines due to Hurricanes Harvey and Irma. Some 47% of homes sold last month were on the market less than... Read More ›

Multifamily Developer Confidence Weakens in Third Quarter

Tue, 11/21/2017 - 10:04
The National Association of Home Builders’ (NAHB) Multifamily Production Index (MPI) dropped 10 points to 46 in the third quarter of 2017 (Figure 1). This quarter marks the lowest MPI reading since the second quarter of 2011. The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100.... Read More ›

Townhouse Construction Growth Continues

Tue, 11/21/2017 - 08:35
According to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, townhouse construction starts continue to post gains. Over the last four quarters ending with the third quarter of 2017, townhouse starts totaled 98,000, 4% higher than the four quarters prior. Townhouses, or single-family attached housing, represented 26,000 starts during the third quarter of 2017,... Read More ›

Core Inflation Ticks Up

Fri, 11/17/2017 - 14:00
The Bureau of Labor Statistics reported that prices faced by urban consumers rose by 0.1 percent over the month of October, slowing down from the 0.5 percentage point increase in September and the 0.4 percentage point rise in August. Over the past year, headline CPI grew by 2.0 percent on a not seasonally adjusted basis, slower than then 2.2 percent... Read More ›

Declining New Home Size Trend Continues

Fri, 11/17/2017 - 11:58
After increasing and leveling off in recent years, new single-family home size continued along a general trend of decreasing size during the third quarter of 2017. This change marks a reversal of the trend that had been in place as builders focused on the higher end of the market during the recovery. As the entry-level market expands, NAHB expects typical new home size... Read More ›

Housing Starts Rise in October

Fri, 11/17/2017 - 09:51
Total housing starts increased in October, with solid readings from the single-family sector. Total starts increased 13.7% to a 1.29 million seasonally adjusted annual rate, according to the joint data release from the Census Bureau and HUD. A jump in multifamily construction also increased the headline rate. Single-family starts increased for the month, rising to an 877,000 seasonally adjusted rate in... Read More ›

Home Features that Use Water

Thu, 11/16/2017 - 13:54
Almost exactly half of residential water use consists of water used outside the home (e.g., for watering lawns), according to a recent NAHB study.  Indoors, the biggest users of water are toilets, followed by showers, faucets, clothes washers and leaks. These results of the NAHB are based on data that became available in 2016 in the form of Residential End Uses of... Read More ›

Builder Confidence Climbs to 8-Month High in November

Thu, 11/16/2017 - 10:02
Builder confidence in the market for newly-built single-family homes rose two points to a level of 70 in November on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI). This was the highest report since March. Despite the increase, builders continue to face supply-side constraints, such as lot and labor shortages and ongoing building material price increases. Nonetheless, demand for single-family housing is... Read More ›

OSB Price Declines Consistent with Random Lengths Data

Wed, 11/15/2017 - 08:29
The price of OSB fell 1.0% in October, in contrast to prices paid for softwood lumber (+2.3%), gypsum products (+0.3%) and ready-mix concrete (+0.2%), which all increased. In addition, the price index measuring inputs to residential construction rose 0.1% in October, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. The drop in OSB... Read More ›

Fed Survey Confirms Broader Economic Improvement

Mon, 11/13/2017 - 10:11
Information provided by the Federal Reserve Board in its October 2017 release of the Senior Loan Officer Opinion Survey (SLOOS) indicates that lending standards on commercial and industrial (C&I) loans to large and medium-sized firms continue to ease on net. The continued easing in standards on C&I loans suggests that that the loan stock of C&I loans continued to expand.... Read More ›

How Much Water Homes Use

Thu, 11/09/2017 - 13:53
The residential sector accounts for less than 8 percent of water used in the U.S., according to a recent study published by NAHB. The recent NAHB study draws on information published by the U.S. Geological Survey (USGS).  The USGS compiles data on water use  every five years.  The latest numbers (from 2010) were published in 2014.  The USGS labels water used by residences as “domestic.”  NAHB follows terminology... Read More ›

Los Angeles Takes Top Spot as Nation’s Least Affordable Housing Market

Thu, 11/09/2017 - 10:30
San Francisco, which has been the nation’s least affordable major housing market for nearly five years, was supplanted by Los Angeles in the third quarter of 2017, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). Nationwide, 58.3 percent of new and existing homes sold between the beginning of July and end of September were... Read More ›

Market Share of 5,000+ Square Foot Homes Declines

Wed, 11/08/2017 - 10:00
According to the Census Bureau’s Survey of Construction, the share of new homes started with 5,000 square feet or more of living space stood at 3.1% in 2016, down from 3.9 percent in 2015. The total number of 5,000+ square-foot homes started in absolute terms was 24,000, down from 28,000 in 2015. In 2015, the number of 5,000+ square feet... Read More ›

Construction Job Openings in September

Tue, 11/07/2017 - 10:28
The count of unfilled jobs in the construction sector declined in September. Given the significant need for repair and restoration work in the wake of Hurricanes Harvey and Irma, we can expect increases in the months ahead. According to the BLS Job Openings and Labor Turnover Survey (JOLTS) and NAHB analysis, the number of open construction sector jobs (on a seasonally adjusted basis)... Read More ›

Private Inventories Contribute to Q3 GDP Growth

Mon, 11/06/2017 - 12:00
The Bureau of Economic Analysis (BEA) reported that real gross domestic product (GDP) rose by 3.0 percent over the third quarter on a seasonally adjusted annual rate basis. However, residential fixed investment (RFI) fell by 6.0 percent over the quarter. Despite the decline in the RFI component, the contribution of gross private investment to GDP growth rose, reflecting a large... Read More ›

LMI Indicates Continued Improvement Across The Country In The Third Quarter

Mon, 11/06/2017 - 10:00
According to the NAHB/First American Leading Markets Index (LMI), 84 percent, 282 metropolitan statistical areas, recorded growth in their LMI Score over the third quarter of 2017. The index uses single-family housing permits, employment, and home prices to measure proximity to a normal economic and housing market. The index is calculated for 337 local markets, metropolitan statistical areas (MSAs), as well as... Read More ›

Employment Growth Rebounds in October

Fri, 11/03/2017 - 11:47
According to the Employment Situation for October 2017 reported by the Bureau of Labor Statistics (BLS), total nonfarm payroll employment rose by 261,000 in October and the unemployment rate decreased to 4.1% in October, from 4.2% in September. Employment rebounded sharply in October after hurricane-related disruptions in September. Employment growth reinforced the Fed’s statement on Wednesday that “the labor market... Read More ›

Fed Leaves Rates Unchanged, Current Range Deemed “Accommodative”

Fri, 11/03/2017 - 10:00
On Wednesday, November 1, the Federal Open Markets Committee (“FOMC”) decided to leave its interest rate, the federal funds rate, unchanged at a range of 1.00 to 1.25 percent. Although the effects of the past hurricanes have reversed the longer trend in both employment and inflation, the hurricanes’ impacts are expected to fade and the longer-trend will reappear. In the... Read More ›

Jerome Powell Nominated to Lead the Fed

Thu, 11/02/2017 - 15:23
President Trump has nominated Jerome H. Powell to be the next Chairman of the Board of Governors of the Federal Reserve System. In his role as Chairman of the Board of Governors (“the Board”), Mr. Powell would also chair the Federal Open Markets Committee (“FOMC”), the monetary policy decision making body composed of the other Federal Reserve Board governors and... Read More ›

55+ Builders and Developers Stay Confident in Third Quarter

Thu, 11/02/2017 - 10:05
Builder confidence in the 55+ housing market remained in positive territory in the third quarter of 2017, with a single-family 55+ housing market index reading (55+ HMI) of 59 (Figure 1). The index dropped seven points this quarter, but it is the 14th consecutive quarter in which it has been above 50, the break-even point at which more respondents view... Read More ›

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