Eye On Housing - A Blog from NAHB

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National Association of Home Builders Discusses Economics and Housing Policy
Updated: 24 min 12 sec ago

The Number of Hispanic Construction Business Owners Rises in Every Age Group

Tue, 01/02/2018 - 10:00
The number of business owners in the construction industry (firms involved in the construction of buildings, heavy/civil engineering construction, or specialty trade contractors) declined 8% from 2.3 million in 2007 to 2.1 million in 2012, according to the U.S. Census Bureau’s Survey of Business Owners (collected in years ending in ‘2’ and ‘7’). An earlier post reported that the number... Read More ›

Top Posts: Declining New Home Size Trend Continues

Mon, 01/01/2018 - 08:35
With the end of 2017 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In November, Robert Dietz tracked the ongoing decline in median new home size. 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... Read More ›

Top Posts: Builders Satisfy Demand for Open Floor Plans

Fri, 12/29/2017 - 08:35
With the end of 2017 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In January, Paul Emrath analyzed data concerning popular floor plans. According to a recent NAHB article, open floor plans are popular among home buyers, and the design of new single-family homes tends to be, if anything, even more open. For example, in a 2015 NAHB survey,... Read More ›

Top Posts: Young Adults & the Construction Trades

Thu, 12/28/2017 - 08:35
With the end of 2017 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In January, Rose Quint presented survey data concerning young adults and the construction industry. NAHB conducted a national poll of young adults ages 18 to 25 to find out how this age group feels about a career in the construction trades. The... Read More ›

Top Posts: Property Taxes by State – 2015

Wed, 12/27/2017 - 08:34
With the end of 2017 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In January, David Logan reported on average property taxes by state, an issue that received additional attention due to tax reform. The 2015 American Community Survey data shows that New Jersey still leads the nation with the highest average annual real estate tax (RET) bill... Read More ›

Top Posts: Builders Starting to Report Shortages of Framing Lumber

Tue, 12/26/2017 - 08:35
With the end of 2017 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In July, Paul Emrath examined increasing concerns over lumber pricing and availability.   For several years now, the recovery in single-family home building has been hampered by shortages of labor and lots.  Availability of building materials, meanwhile, has not been much... Read More ›

Top Posts: The Average Builder Uses 10 Different Green Products and Practices

Mon, 12/25/2017 - 08:45
With the end of 2017 approaching, NAHB’s Eye on Housing is reviewing the posts that attracted the most readers over the last year. In March, Paul Emrath examined green building practices.   On average, single-family builders use 10.2 different green products or practices, and 22 percent always or almost always have their homes certified to a green standard, according to a recent NAHB survey.... Read More ›

New Home Sales Hit Post-Recession High in November

Fri, 12/22/2017 - 11:16
Contracts for new, single-family home sales expanded by 17.5% in November to a 733,000 seasonally adjusted annual rate, according to estimates from the joint release of HUD and the Census Bureau. The particularly strong growth rate was due to a large downward revision for the October estimate (624,000, originally 685,000). However, the November sales rate was the fastest pace since July 2007. The expansion is... Read More ›

Housing Share of GDP: Third Quarter 2017

Thu, 12/21/2017 - 14:43
With the release of the final estimate of third quarter 2017 GDP (a 3.2% annual growth rate), housing’s share of gross domestic product (GDP) declined slightly to 15.3%. However, the home building and remodeling component – residential fixed investment – held steady at 3.4%. Housing-related activities contribute to GDP in two basic ways. The first is through residential fixed investment (RFI). RFI is effectively the... Read More ›

Economy Grows in Q3, Exceeding Potential

Thu, 12/21/2017 - 12:18
The Bureau of Economic Analysis (BEA) reported that the economy, as measured by growth in real gross domestic product (GDP), rose by 3.2 percent in the third quarter of 2017. The third estimate of third quarter 2017 GDP growth is slightly less than the 3.3 percent growth rate recorded in the second estimate, but faster than the “advance”, or initial,... Read More ›

Existing Sales Surge 5.6% in November

Wed, 12/20/2017 - 13:08
November existing sales embraced an end of the year rally, increasing 5.6% to the highest level since December 2006; but the first-time buyer share of 29% continued to disappoint. The National Association of Realtors reported 44% of homes sold last month were on the market less than a month, a slightly slower pace than the 47% last month. The November... Read More ›

Most States Saw Permits Growth Over October YTD

Wed, 12/20/2017 - 09:11
According to the Census Bureau’s Building Permits Survey (BPS), over the first ten months of 2017 the total number of permits, which included single-family and multi-family, issued nationwide on a not seasonally adjusted basis reached 1,070,750. This is 6.8% ahead of its level over the first ten months of 2016, 1,002,139. These data are taken from the Builder Permits Survey... Read More ›

Strong Housing Starts Estimate Matches Rise in Builder Confidence

Tue, 12/19/2017 - 09:43
Total housing starts increased in November, with strong readings from the single-family sector. Total starts increased 3.3% to a 1.3 million seasonally adjusted annual rate, according to the joint data release from the Census Bureau and HUD. The headline number was supported by strong numbers from single-family home building. Single-family starts increased for the month, rising 5.3% to a 930,000 seasonally adjusted... Read More ›

Builders Confident As Market Primed to Expand in 2018

Mon, 12/18/2017 - 10:01
Builder confidence in the market for newly-built single-family homes increased five points to a level of 74 in December on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) after a downwardly revised November reading. This was the highest report since July 1999, over 18 years ago. Builder confidence has improved in 2017 on hopes of an improved regulatory environment... Read More ›

Homeownership by Race and Ethnicity

Fri, 12/15/2017 - 10:15
Data from the Census Bureau’s Housing Vacancy and Homeownership (CPS/HVS) survey show that the US homeownership rate increased to 63.9 percent in the third quarter of 2017, up 0.4 percentage points from the third quarter of 2016. A series of blogs on Eye on Housing cover this topic along with CPS/HVS data on vacancies and household formations. Also produced from... Read More ›

Headline Inflation Accelerates, Core Inflation Slows

Thu, 12/14/2017 - 12:03
The Consumer Price Index – Urban Consumers (CPI) rose by 0.4 percent on a seasonally adjusted basis over the month of November and 2.2 percent over the past 12 months on a not seasonally adjusted basis. According to the release, energy prices accounted for three-fourths of the increase in the monthly change in headline inflation. Core CPI, which excludes more... Read More ›

Construction Trades: A Step on the Path Toward Higher Paying Jobs

Thu, 12/14/2017 - 08:32
A recent NAHB study identifies eight senior positions at home building companies that are often to nearly always filled by someone with experience in one or more of the construction trades.  Average annual compensation (salary and bonus combined) for each of the eight positions is at least $80,000—at least $100,000, if the position is Head/Director or above of one of... Read More ›

Fed Raises Key Rate, Balance Sheet Normalization to Accelerate in January

Wed, 12/13/2017 - 16:35
In its statement following its December 12-13, 2017 meeting, the Federal Open Markets Committee (FOMC) decided to raise the target range for the federal funds rate to a range of 1.25 to 1.5 percent, a decision that was widely expected. Despite the increase, the FOMC believes that the “stance of monetary policy remains accommodative”. As illustrated by the Federal Reserve... Read More ›

State Economies Contribute to Nationwide GDP Growth in Q2 of 2017

Wed, 12/13/2017 - 09:47
Real gross domestic product (GDP) increased in 48 states and the District of Columbia in the second quarter of 2017, according to the U.S. Bureau of Economic Analysis. The majority of the states, 44, and the District of Columbia posted an acceleration in its annualized rate from the first quarter of 2017 to the second quarter of 2017 while only... Read More ›

Record-Setting Pace of Price Increases Continues

Tue, 12/12/2017 - 20:09
Prices paid for inputs to residential construction (+0.7%), softwood lumber (+2.3%), gypsum products (0.4%), and OSB (+15.3%) all increased in November, according to the latest Producer Price Index (PPI) release by the Bureau of Labor Statistics. Since January 2017, the price paid for every major input to construction NAHB tracks has increased. The following is a list of price increases... Read More ›