Economics

House Moves to Raise Limits on State and Local Tax Deduction

Filed in Advocacy, Housing Affordability, Tax Reform by on November 19, 2021 2 Comments
House Moves to Raise Limits on State and Local Tax Deduction

In a key win for NAHB members who live in high-tax states, the House-passed Build Back Better Act includes long-awaited tax relief for taxpayers who are affected by the federal limit on state and local tax (SALT) deductions. 

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Employee Retention Tax Credit Ends Early

Filed in Tax Reform by on November 18, 2021 0 Comments
Employee Retention Tax Credit Ends Early

A provision tucked into the bipartisan infrastructure bill signed into law this week by President Biden retroactively moved up the expiration of the Employee Retention Credit (ERC) to Oct. 1, 2021. The ERC had been scheduled to remain in effect through Dec. 31, 2021.

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Multifamily Construction Sentiment Improves in Third Quarter, Despite Headwinds

Filed in Economics, Multifamily by on November 18, 2021 0 Comments
Multifamily Construction Sentiment Improves in Third Quarter, Despite Headwinds

Confidence in the market for new multifamily housing improved in the third quarter, according to results from the Multifamily Market Survey (MMS) released today by NAHB.

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Supply-Side Disruptions Push Single-Family Production Down in October

Filed in Economics, Material Costs, Multifamily by on November 17, 2021 3 Comments
Supply-Side Disruptions Push Single-Family Production Down in October

Single-family housing production lagged in October due to supply-chain effects for materials and ongoing access issues for labor and lots. Overall housing starts decreased 0.7% to a seasonally adjusted annual rate of 1.52 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.

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Record Share of NAHB Members Report Labor Shortages

Filed in Economics, Workforce Development by on November 16, 2021 1 Comment
Record Share of NAHB Members Report Labor Shortages

Labor shortages, as reported by single-family builders and remodelers in NAHB’s latest surveys, have hit unprecedented highs since each of the surveys began and continue to exacerbate housing affordability challenges, along with lot shortages and heightened material costs.

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Builder Confidence Up on Strong Demand Even as Supply Side Challenges Persist

Filed in Economics by on November 16, 2021 20 Comments
Builder Confidence Up on Strong Demand Even as Supply Side Challenges Persist

Low existing inventories and strong buyer demand helped push builder confidence higher for the third consecutive month even as supply-side challenges — including building material bottlenecks and lot and labor shortages — remain stubbornly persistent.

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Fed Acts on Inflation as Housing Affordability Weakens

Filed in Economics, Housing Affordability, Material Costs by on November 12, 2021 0 Comments
Fed Acts on Inflation as Housing Affordability Weakens

The combination of higher home prices, rising construction costs and moderately higher interest rates will exacerbate housing affordability conditions and increasingly push many prospective buyers out of the market in the coming months.

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Housing Affordability Holds Steady but Supply-Side Challenges Persist

Filed in Economics, Housing Affordability, Trends by on November 11, 2021 4 Comments
Housing Affordability Holds Steady but Supply-Side Challenges Persist

Lansing-East Lansing, Mich., is the nation’s most affordable major housing market while Los Angeles-Long Beach-Glendale, Calif., is the least affordable major housing market.

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Materials Prices Post Record Year-to-Date Increase

Filed in Economics, Material Costs by on November 10, 2021 2 Comments
Materials Prices Post Record Year-to-Date Increase

The softwood lumber price index increased 9.1% in October (seasonally adjusted) — its first monthly increase since May, according to the Bureau of Labor Statistics’ latest Producer Price Index (PPI) report. Overall, building material prices have increased 12.2% year to date, after climbing 4.5% over the same period in 2020.

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Prospective Buyers Frustrated by Bidding Wars, but Continue to Search

Filed in Economics, Housing Affordability, Trends by on November 5, 2021 0 Comments
Prospective Buyers Frustrated by Bidding Wars, but Continue to Search

For only the third time in the history of NAHB’s Housing Trends Report, the top reason buyers are struggling to buy a home is because they are getting outbid.

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