Economics

Treasury Defers Tax Payments, Waives Interest and Penalties for 90 Days

Filed in Economics by on March 17, 2020 2 Comments
Treasury Defers Tax Payments, Waives Interest and Penalties for 90 Days

Treasury Secretary Steve Mnuchin announced on March 18 that households and small businesses can defer tax payments without interest or penalties for 90 days.

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Builder Confidence Declines But Remains Solid Amid Rising Risks

Filed in Economics by on March 17, 2020 6 Comments
Builder Confidence Declines But Remains Solid Amid Rising Risks

Builder confidence in the market for newly-built single-family homes fell two points to 72 in March, according to the latest NAHB/Wells Fargo Housing Market Index (HMI) released today. Sentiment levels have held in a firm range in the low- to mid-70s for the past six months.

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Fed Cuts Interest Rates to Zero

Filed in Economics, Housing Finance, Uncategorized by on March 15, 2020 0 Comments
Fed Cuts Interest Rates to Zero

The Federal Reserve on Sunday evening slashed interest rates to zero in a dramatic move to boost the economy and keep borrowing costs as low as possible for consumers and businesses in the wake of the coronavirus crisis.

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Single-Family Large Metro Construction Lagged in 2019

Filed in Economics, Uncategorized by on March 13, 2020 0 Comments
Single-Family Large Metro Construction Lagged in 2019

The latest release of NAHB’s Home Building Geography Index (HBGI) shows single-family construction in large metro areas last year fell behind the growth of both exurbs outside medium-sized cities and small towns. Exurbs and small towns grew by 2.9% and 2.8%, respectively, while the growth in large metro areas fell 1.4% over the year.

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Fed Cuts Rates by Half a Percentage Point

Filed in Economics by on March 3, 2020 0 Comments
Fed Cuts Rates by Half a Percentage Point

Reacting to growing economic concerns stemming from the coronavirus, the Federal Reserve Federal Open Market Committee today reduced the target range for the federal funds rate by 50 basis points, lowering the target to 1% to 1.25%. The target rate is now the lowest since late 2017, completely unwinding the rate hikes of 2018.

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A Red-Blue Divide on Home Construction

Filed in Economics, Home Building, Housing Trends by on March 3, 2020 3 Comments
A Red-Blue Divide on Home Construction

Nearly two-thirds of multifamily construction in the fourth quarter of 2019 occurred in “blue counties” where Hillary Clinton garnered the most votes in the 2016 election, while nearly the same percentage of single-family home building took place in “red counties” where President Trump won. And momentum for continued single-family and multifamily construction continues in the red counties, according to the latest quarterly NAHB Home Building Geography Index (HBGI).

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More than 60% of a Home’s Sales Price Goes to Construction Costs

Filed in Economics, Home Building by on March 2, 2020 4 Comments
More than 60% of a Home’s Sales Price Goes to Construction Costs

NAHB’s latest Cost of Construction Survey reveals that 61.1% of the average home sales price consisted of construction costs in 2019, up from 55.6% in 2017 but similar to the 2013 and 2015 breakdowns of 61.7% and 61.8%, respectively.

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Coronavirus Outbreak: What Businesses Need to Know

Filed in Business Management, Economics by on February 28, 2020 0 Comments
Coronavirus Outbreak: What Businesses Need to Know

NAHB is closely monitoring the spread of COVID-19 (aka Coronavirus Disease 2019) to stay ahead of this rapidly evolving situation and keep members appropriately informed. NAHB will provide additional analysis of how this global health crisis could impact housing as more information becomes available. In the meantime, here is a brief economic analysis as well as resources to help businesses prepare their workplace.

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New Home Sales Strong at Start of 2020

Filed in Economics by on February 26, 2020 2 Comments
New Home Sales Strong at Start of 2020

Sales of newly built, single-family homes rose 7.9% to a seasonally adjusted annual rate of 764,000 units in January, coming off an upward revision in December, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This is the highest monthly sales pace since July 2007.

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Labor Shortages Remain Top Concern for Builders

Filed in Economics, Home Building, Housing Trends by on February 20, 2020 5 Comments
Labor Shortages Remain Top Concern for Builders

More than four out of five builders – 85% – expect to face serious challenges regarding the cost and availability of labor this year, according to a recent survey of NAHB members.

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