Trends
Record Number of Builders Report Material Shortages
Shortages of materials are now more widespread than at any at any time since NAHB began tracking the issue in the 1990s, with more than 90% of builders reporting shortages of appliances, framing lumber and OSB.
Home Building at Fastest Pace in Areas with Shortest Commute Times
Home building across the nation expanded the fastest in places with the shortest commute times, according to the quarterly NAHB Home Building Geography Index (HBGI) released today. The HBGI also shows the suburban shift in new home construction to low density, low cost markets stemming largely from the COVID-19 pandemic and first reported in the second quarter of 2020 continued into 2021.
Construction Self-Employment Rates at Record Low
The current construction self-employment rate is now the lowest on record, according to the 2019 American Community Survey. Today, 22% (2.4 million) of construction workers are self-employed, down from a record high of more than 26% in 2010.
Building Materials Top Housing Concerns
Builder confidence held stable in May, despite growing concerns over the price and availability of most building materials, including lumber.
More Buyers are Pumped Up Over Exercise Rooms
Over the past five years, there’s been a big jump in the percentage of prospective home buyers who want an exercise room, according to a recent study by NAHB.
The Most Common Reason Active Buyers Can’t Close the Deal
A recent Eye on Housing blog post revealed that 64% of buyers who were actively engaged in the process of finding home in the first quarter of 2021 have spent upwards of three months searching for a home without success. The most common reason long-time searchers have come up empty-handed is not because they can’t find a home at an affordable price but rather due to a rising trend that is occurring in the marketplace.
More Buyers are Looking for a New Home
A growing number of buyers are looking specifically at new home construction from the onset of their home search.
Home Building Employment Across States and Congressional Districts
The most recent and comprehensive estimates of home building employment by state and congressional district reveals that California is the state with the most residential construction workers. Idaho’s 1st congressional district (Rep. Russ Fulcher – R), which comprises much of the western part of the state, leads the nation with 24,000 residents engaged in home building.
COVID-19 Continues to Fuel Desire for Homeownership
Interest in homeownership among prospective buyers continues to grow in the wake of the COVID-19 pandemic, with 16% of American adults looking to purchase a home in the next 12 months — up from 10% year over year — according to NAHB’s Housing Trends Report for the first quarter of 2021. This is the third — and largest — year over year increase in the series’ history.
Builder Confidence Edges Up as Strong Demand Offsets Supply-Side Challenges
Strong buyer demand pushed builder confidence up in April even as builders continued to grapple with rising lumber prices and supply chain issues and consumers faced higher home prices due to a lack inventory. The latest NAHB/Wells Fargo Housing Market Index (HMI) released today shows that builder confidence in the market for newly built single-family homes rose one point to 83 in April.
