• New Home Sales Increase in May Before Fed’s June Rate Rise June 24, 2022
    After posting four consecutive monthly declines on rising mortgage rates and worsening affordability conditions, new home sales posted a solid gain in May as some buyers rushed into the market in advance of the Federal Reserve’s June interest rate hike. Sales of newly built, single-family homes in May increased 10.7% to a 696,000 seasonally adjusted […]
    Robert Dietz
  • One in Three Workers in Construction Is Hispanic June 23, 2022
    Hispanics are an important source of labor in the U.S. construction industry, where skilled labor shortage is a long-term issue. One in three workers in the US construction industry is Hispanic. The latest labor force statistics from the 2021 Current Population Survey show that Non-Hispanic Whites account for the majority of workers in the construction […]
    Na Zhao
  • Employment Situation in May: State-Level Analysis June 22, 2022
    Nonfarm payroll employment increased in 32 states and the District of Columbia in May compared to the previous month while 18 states lost jobs. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 390,000 in May, following a gain of 436,000 jobs in April. On a month-over-month basis, employment data […]
    Danushka Nanayakkara-Skillington
  • Existing Home Sales Slow Again While Prices Surge June 21, 2022
    As rising mortgage rates and higher home prices continued to price out homebuyers, existing home sales declined for four consecutive months, according to the National Association of Realtors (NAR). However, the trend in home price appreciation continued as supply remained tight. The median existing home prices in May surpassed $400,000, the highest level on record […]
    Fan-Yu Kuo
  • Metro Areas Trail Lower Density Markets for Apartment Construction Growth June 17, 2022
    In the first quarter of 2022, multifamily home building showed greater growth across all regional markets compared to the first quarter of 2021, per the NAHB’s Home Building Geography Index (HBGI). Apartment construction far outpaced single-family building in all regional geographies but especially in lower density markets1. Low rental vacancy rates and rising rents gave […]
    Litic Murali
  • Housing Starts Slow in May June 16, 2022
    Single-family starts declined further in May, as higher interest rates weighed on housing affordability. This follows a sixth straight monthly 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 5.5% to a 1.05 million unit rate in May. Despite declines […]
    Robert Dietz
  • Federal Reserve Accelerates Rate Hikes June 15, 2022
    To fight persistent inflation, the Federal Reserve has committed to significantly cooling demand. This approach reflects a non-monetary policy failure to fix underlying supply-side challenges that are pushing up inflation. The Fed lacks policy tools to make these supply-side fixes, so it must rely on demand-side impacts to bring down inflation by reducing economic growth. […]
    Robert Dietz
  • Weakening Builder Confidence Points to Economic Troubles Ahead June 15, 2022
    Rising inflation and higher mortgage rates are slowing traffic of prospective home buyers and putting a damper on builder sentiment. In a troubling sign for the housing market, builder confidence in the market for newly built single-family homes posted its sixth straight monthly decline in June, falling two points to 67, according to the National […]
    Robert Dietz
  • Rapidly Rising Building Materials and Freight Prices Push Construction Costs Higher June 14, 2022
    The prices of goods used in residential construction climbed 1.8% in May (not seasonally adjusted) and have increased 19.4%, year-over-year, according to the latest Producer Price Index (PPI) report. Prices have surged 40.4% since January 2020.  Building materials (i.e., goods inputs to residential construction, less energy) prices have increased 5.4%, year-to-date, and are 36.3% higher […]
    David Logan
  • Multifamily Permits Holding Steady in April 2022 June 14, 2022
    Over the first four months of 2022, the total number of single-family permits issued year-to-date (YTD) nationwide reached 377,713. On a year-over-year (YoY) basis, this is a 1.7% decline over the April 2021 level of 384,196.   Year-to-date ending in April, single-family permits declined in three out of the four regions. The South posted a […]
    Danushka Nanayakkara-Skillington