Eye On HousingJump for AD&C Loan BalancesResidential construction loan volume reached a post-Great Recession high during the first quarter of 2022, as home building activity entered a new year with higher interest rates. As the single-family building market slows in 2022, the volume of such loans will likely peak in the coming quarters. The volume of 1-4 unit residential construction loans […]New Home Sales Deteriorate in AprilNew single-family home sales posted a significant decline in April as housing demand deteriorated in the face of rising interest rates. After starting at 3.1% in December, the average 30-year fixed rate mortgage increased to 5.1% by the end of April, per Freddie Mac. Additionally, builders continue to grapple with supply-chain issues, limiting inventory in […]Missing Middle Construction Still MissingThe missing middle construction sector includes development of medium-density housing, including townhouses, duplexes and other small multifamily properties. While townhouse construction has trended higher in recent quarters, the multifamily segment of the missing middle (apartments in 2 to 4 unit properties) has disappointed. For 2021, there were only 12,000 starts of such residences. This is flat from […]Employment Situation in April: State-Level AnalysisNonfarm payroll employment increased in 41 states and the District of Columbia in April compared to the previous month while eight states lost jobs. North Dakota remained unchanged. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 428,000 in April, following a gain of 428,000 jobs in March. On a […]Gains for Custom Home BuildingNAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey indicates custom home building posted a year-over-years gain for the first quarter of 2022. There were 46,000 total custom building starts during the first quarter of the year. This marks a 28% increase from the first quarter of 2021. Over the […]Existing Home Sales Fall to Near Two-Year LowAs rising mortgage rates and higher home prices continued to price out first-time and young homebuyers and reduce affordability, existing home sales dropped to the lowest level since June 2020, according to the National Association of Realtors (NAR). However, the trend in home price appreciation continued as supply remained tight. Total existing home sales, including […]Multifamily Production Index Turns Downward in the First QuarterConfidence in the market for new multifamily housing turned downward in the first quarter of 2022, according to the latest results from NAHB’s Multifamily Market Survey (MMS). The MMS produces two main indices. The survey’s Multifamily Production Index (MPI) decreased six points to 48 in the first quarter, dipping below the break-even mark of 50 […]Townhouse Construction GrowingAccording to NAHB analysis of the most recent Census data of Starts and Completions by Purpose and Design, during the first quarter of 2022 single-family attached starts totaled 36,000, which is 16% higher than the first quarter of 2021. Over the last four quarters, townhouse construction starts totaled 152,000 units, 25% higher than the prior four […]Strong Gains for Single-Family Built-for-RentThe single-family built-for-rent sector continues to expand as housing affordability headwinds increase. According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 13,000 single-family built-for-rent (SFBFR) starts during the first quarter of 2022. This is a 62.5% gain over the first quarter 2021 total. Over […]Single-Family Starts Decline as Rates, Headwinds IncreaseSingle-family starts declined in April, as higher interest rates weighed on housing affordability, producing a fifth straight decline for the NAHB/Wells Fargo HMI. Additionally, the cost and availability of materials, lumber, labor and lots remain key supply-side headwinds. Single-family permits decreased 4.6% to a 1.11 million unit rate in April. Nonetheless, the resale market lacks […]