A surge in multifamily production resulted in overall nationwide housing starts rising 11.3% to a seasonally adjusted annual rate of 1.23 million units, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Single-family starts dropped 4% to a seasonally adjusted annual rate of 795,000 units.
Builder confidence in the market for newly-built single-family homes remained on firm ground in January, down two points to a level of 67 from a downwardly revised December reading of 69 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
The average size of newly built homes decreased in 2016 – a sign that the home building industry is preparing for the coming wave of first-time buyers as Millennials begin to dip their toes into the market, according to research and survey results released today by NAHB.
Now that spending is back up and consumers are increasingly interested in buying new (or new-er) homes, remodeling expenditures are likely to grow at a more gradual pace than in recent years, according to NAHB economists. That means remodelers will have to identify new ways to maintain their share of the market.
Fueled by a growing economy, solid employment gains and rising household formations, single-family production will continue on a gradual, upward trajectory in 2017, according to economists speaking at the NAHB International Builders’ Show in Orlando, Fla. today.
A sharp decline in multifamily starts pushed overall housing production down 18.7% in November to a seasonally adjusted annual rate of 1.09 million units, according to newly released data from HUD and the Commerce Department. Overall permit issuance was also down 4.7%. “Year-to-date, single-family starts are up 9.6% and the overall trend in this sector […]
For just the second time since the Great Recession, the Federal Reserve increased its target for the federal funds rate by 25 basis points. While still low, rates are likely to continue a gradual ascent in the years ahead. The current outlook is for three additional rate hikes in 2017.