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” Residential construction workers are at risk of facing job losses for the first time in this recovery yet the Fed often takes a hawkish stance in its statements at key points, which tends to drive mortgage rates higher. It’s not falling.” ” message.
A lower Fed funds rate can assist with land purchases and apartment construction, but that process would take considerable time before we see any development. The key takeaway from today’s housing data is that there simply isn’t enough demand to justify additional construction — at least as far as the builders are concerned.
A group of academics at Japans Chiba University aimed to find out just how receptive older populations in three countries would be to the idea of robots providing in-home care services, according to an article from Robotics and Automation News based on a study in the journal Nature. There are other aspects that the study aimed to account for.
In this recent article , I explain why we won’t build millions of new homes anytime soon. However, it’s important to understand that housing starts are currently at recession levels because mortgage rates are too high to encourage new housing construction. History suggests that this may not happen.
The town of Newton, Massachusetts is working to comply with a new state law that requires the construction of new multifamily housing units in areas served by public transit, according to reporting from the Boston Globe. Some apartments have been constructed in recent years, but the construction level has been low.
Department of Housing and Urban Development (HUD) visited the University of Alaska at Fairbanks to tout the possibilities that 3D printing technology could bring to the construction of affordable housing in the U.S. A key goal for the project includes the deployment of local and sustainable resources for construction materials.
One key data line that is flagging a path to recession is the loss of residential construction workers. A while back, HousingWire Editor in Chief Sarah Wheeler and I discussed the risk of recession due to a lack of construction labor. Let’s look at today’s residential construction report and see where we are. From the U.S.
The growing prevalence of extreme weather events and the high cost of construction are pushing property insurers to significantly raise their prices , even in places you might not expect. In Florida , it’s hurricanes,” the article explained. “In All of which are exacerbated by the inflation of construction costs.
This article originally appeared in the March 2025 edition of MortgagePoint magazine, online now. They also reported that, as of 2023, at least eight states have policies that preempt local bans of ADU construction. At that time, the study showed that ADU construction was rising by 8.6% per year over the last decade.
In the last few months in my articles for HousingWire, I have written that monthly supply has been rising and that this increasing supply was the most critical metric for the housing market, specifically the new home sales market. months and above, the builders will pull back on construction. This represents a supply of 6.3
percentage points and construction contracting growth by 0.11 This article explores the economic trends driving these outcomes, focusing. Real GDP of metropolitan areas rose 2.7% in 2023, with the “real estate, rental and leasing” sector contributing 0.34 percentage points.
Revisions came in negative, but the real story here is that housing is back to its slow construction phase, which isn’t shocking considering where monthly supply is at and the delays in construction that we are all aware of. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. Become a member today.
Even in the years 2020 to 2024, however, which are very favorable for housing, I don’t see a credit sales boom or construction boom brewing in the current data — nor do I expect to see either of these shortly. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. Here is why.
When the monthly supply of new homes grows, builders will throttle back construction to control the flow of products in order to protect their margins. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. This represents a supply of 6.2 months at the current sales rate. Become a member today.
Residential construction and new home sales have been making quite a few headlines lately. Keep reading to catch up on the latest stories and market data related to new home construction and sales. ” New home construction in the news New homes are selling like it’s 2006 again. This HousingWire article reports.
There are about 790,000 multi-unit properties under construction as of December 2024. So, save this article, memorize these stats and share them wherever you can. Homebuyers found photos to be the most valuable feature found on a listing website (66%). 25% of sellers spent 21 years or more in their home before selling. year-over-year.
in 2020, and over the same period, single-family construction increased 12% to almost 1 million housing starts, and the remodeling market expanded 7%. “We Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. sawmill output increased only 3.3% This content is exclusively for HW+ members. Become a member today.
This data line confirms what we all know to be the case: The housing market, at least as it relates to construction, is in a recession. We talked about this in March , and even last year, when I wrote about the problem with the housing construction boom premise. “I don’t expect a boom in housing construction.
Now, in 2021, the large, female-only company designed and constructed a home that was showcased in the 2021 Utah Valley Parade of Homes — and sold to benefit several good causes. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. Utah Professional Women in Building group. Become a member today.
This article originally appeared in the January 2025 edition of MortgagePoint magazine, online now. With this foundation in place, lenders must then construct a target state of what their technology ecosystem would look like in an ideal world.
Michael Gevurtz, CEO and Founder, Bluebird Lending This article originally appeared in the February 2025 edition of MortgagePoint magazine, online now. He is experienced in all aspects of real estate ownership, including acquisitions, financing, development, construction management, leasing, and property management.
National homebuilding titan Lennar is comfortably profitable, but company executives lament that a struggle to procure construction materials keeps them from doing more. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. The company reported $1.4 This content is exclusively for HW+ members.
Bob Broeksmit, president of the Mortgage Bankers Association , said the trade association “strongly supports” efforts to increase supply by spurring construction and rehabilitation of homes for renters and first-time buyers. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. Become a member today.
Now Sandoval, who was featured earlier this year in a Wall Street Journal article , is the one knocking on the doors of homeowners facing foreclosure or other distressed circumstances. He passed down his passion for real estate investing to Sandoval, and he is now giving back by helping to construct a medical building in Mexico.
GoFormz highlighted as a top construction technology solution We are thrilled to announce that GoFormz has been selected as a ‘Top Construction Technology Firm’ by Construction Executive. Read the Article: The Top Construction Technology Firms.
This article originally appeared in the February 2025 edition of MortgagePoint magazine, online now. At the same time, originators can educate them on a range of products, including home equity loans for renovations, construction loans for building additions, or even multi-family financing to accommodate extended family members.
Lumber prices, a source of builder and construction company angst for approximately 15 months, are officially falling, as the price that sawmills charge distributors for cut lumber is down for the eighth consecutive week. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. Become a member today.
Don’t expect a buying or construction boom during this period. Your HW+ Membership includes: Unlimited access to HW+ articles and analysis. Following these years of doldrums, in the years 2020 to 2024 we have the best housing demographic patch ever recorded in history. Mature economies are like large ocean liners. Already a member?
This article is part of our 2022 – 2023 Housing Market Update series. Investors offloading negative cash-flowing properties to avoid margin calls and unhappy investors. Increased inventory from robust construction of new, single-family homes with “motivated” sellers.
This article is part of our HousingWire 2022 forecast series. Homebuilders responded to the shortage of homes for sale, accelerating new home construction, even as they face severe supply-side challenges, including rising building material costs and supply-chain bottlenecks, a lack of affordable lots, and difficulty in finding skilled labor.
Below, DeNicola answers questions about the housing industry: HousingWire: To start off, what is your current favorite HW+ article? Rich DeNicola: My favorite HW+ article is the Real Trends Brokerage Compensation Report. We all know the statistics on how new construction has lagged the needs of the country for the past decade.
This article is part of our HousingWire 2022 forecast series. And if three hikes in the federal funds target come to pass, initial rates on ARMs, HELOCs and construction loans (often linked to the bank prime) will likely increase from one-half to three-quarters of a percentage point. for 30-year fixed-rate loans.
Strategic Solutions for Today’s Homebuyers New construction financing and meeting the demand for new homes: According to the National Association of Home Builders (NAHB), in March, 33% of all home sales were new construction financing. That is a significant increase from the 13% average between 2000-2019 in new construction.
This article is featured in the 2024 edition of the Appraisal Buzz Magazine. Read all these articles and more in the latest edition HERE. Financially feasible – Would the proposed use generate enough income to pay for construction costs and make a profit?
Notable job gains occurred in leisure and hospitality, health care, construction, and social assistance. The two sectors of the economy that are getting hit are the tech sector and housing, but this is a good report for construction. In both articles, one factor was key: the growth rate of inflation falling.
I warned about the negative headlines that would inevitably follow the moderation in sales in this HousingWire article. However, construction should continue at a slow and steady pace. months and above, builders tend to halt construction. All housing data will moderate to a normalized trend, but the trend data is still good.
The builders will pull back on construction when the supply is 6.5 We are still in housing recession land as the builders still have a lot of new construction homes and haven’t started yet to build. months of the supply, and 298,000 new homes are still under construction, while 111,000 haven’t started. When supply is 4.3
What we see in this latest starts report is encouraging, as a record number of 5-units are still in construction and anything that gets finished is positive against inflation. As you can see, the 1974 recession destroyed the 5-unit construction production. The future growth of 5-unit construction will be at risk if a recession happens.
months and above, the builders will pull back on construction The current data has seen significant improvement, as the chart below shows. months of the supply are homes that are still under construction, about 259,000 homes 1.6 This article aims to show how much progress we have made in this sector and why it’s happening.
This article is part of our 2022 – 2023 Housing Market Update series. Our upcoming State of the Residential Construction Industry (SORCI) Report will reflect how builders have braced for impact: Despite the rate of new contracts slowing, margins didn’t decrease. Fortunately, it’s not all bad news. Homebuilding Contract Values.
months and above, the builders will pull back on construction. It is an embarrassment, but construction productivity — which has been terrible for decades — is now also dealing with shortages that delay finishing homes. When supply is 4.4 months, this is an OK market for the builders. When supply is 6.5
Our tracker articles have a lot more details about the current weekly market and we publish those each Saturday. Yesterday on CNBC , I talked about the state of the housing market and how important it was that the builders’ confidence data was rising because that keeps construction workers employed and building homes.
Below, Esser answers questions about the housing industry: HousingWire: What is your current favorite HW+ article and why? His articles are always my favorite. His recent article, “Purchase apps are at 2009 level: where’s the inventory?” Finally, the last closely watched trend in the housing market is construction activity.
When we help bring distressed properties back to the market, it’s up to 31% less expensive than a new construction home.”. Planet is in a unique position because there are very few non-depository lenders offering a construction product,” Hattan said.
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