The Q2 2024 Home Building Geography Index shows continued growth in single-family construction due to limited inventory and pent-up demand, while multifamily construction declines amid tighter financial conditions and high apartment construction levels. Both sectors face ongoing challenges from labor and supply shortages, along with higher mortgage rates. According to the NAHB, the Home Building Geography Index (HBGI) is a quarterly measurement of building conditions across the country and uses county-level information about single-family and multifamily permits to gauge housing construction growth in various submarkets. The HBGI for the second…
Read MoreYear: 2024
9 Emerging Home Building Trends
Homebuilders are adapting to material shortages and rising costs by embracing new trends such as prefinished engineered floors, which are cost-effective and structurally sound, and mixed-use spaces to address the shortage of affordable housing. Other emerging trends include dopamine decor for mental well-being, all-electric homes for environmental and cost benefits, and a growing preference for single-story homes due to their accessibility and aesthetic appeal. According to U.S. News, homebuilders have faced their share of challenges in recent years. Material shortages and increased costs have forced builders to be more mindful…
Read MoreU.S. Home Prices Forecast to Rise Modestly as Fed Cuts Rates
U.S. home prices are expected to rise modestly in 2024 despite tight supply and anticipated Federal Reserve rate cuts, with affordability improving but still strained. Prices remain over 50% higher than pre-pandemic levels, driven by homeowners holding onto low mortgage rates, and are projected to increase by a median of 5.4% next year. U.S. home prices will rise relatively modestly this year and next despite tight supply and expected U.S. Federal Reserve interest rate cuts, according to housing analysts polled by Reuters who said purchasing affordability will improve but would…
Read MoreFraming Lumber Prices
Lumber prices have risen for seven consecutive weeks, with the framing lumber composite price increasing by 0.8% as of Aug. 30, 2024, but prices remain 7.4% lower than a year ago. Volatility in lumber prices, influenced by demand, tariffs, and supply-chain issues, continues to impact the cost of new homes, contributing to declining housing affordability. The NAHB explains that it continually tracks the latest lumber prices and futures prices, and provides an overview of the behaviors within the U.S. framing lumber market. The information is sourced each week using the…
Read MoreU.S. Construction Spending Falls More Than Expected in July
U.S. construction spending fell 0.3% in July, with a significant 1.9% drop in single-family homebuilding due to higher mortgage rates and excess inventory. Private non-residential construction also decreased by 0.4%, while public construction spending edged up slightly by 0.1%. According to Reuters, U.S. construction spending fell more than expected in July as higher mortgages and increased supply weighed on single-family homebuilding. The Commerce Department’s Census Bureau said on Tuesday that construction spending dropped 0.3% after being unchanged in June. Economists polled by Reuters had forecast construction spending dipping 0.1%. Construction…
Read MoreWelcome to the Dawn of the Great Renovation
Forbes predicts the “Great Renovation” from 2025 to 2035 will transform America’s residential landscape, as 50 million homes change hands, driving over $3 trillion in renovation needs. Fueled by aging housing stock, low new construction rates, and a wave of older homeowners selling, this movement presents immense opportunities for real estate professionals, home service companies, and innovative, eco-friendly, and smart home solutions to thrive. Forbes talks about the dawn of the Great Renovation, a transformative decade set to redefine America’s residential landscape from 2025 to 2035. This movement isn’t a…
Read MoreAmerica’s Timber Bubble? Tree Stocks Grow as the South Bleeds
Soft lumber prices, driven by a surplus of standing timber and declining housing demand, are squeezing margins for timber companies in Arkansas and the Deep South. Despite a strong timber supply, low prices and reduced demand, especially since the 2008 recession, have made landowners hesitant to harvest. This situation could worsen as housing starts decrease, further impacting the timber market. According to Woodcentral, a huge increase in standing timber (which has doubled in 45 years) and declining housing demand is to blame for persistently soft lumber prices, which are now…
Read MoreHome Depot: Consumers May Not Be Spending Big, but They’re Still Remodeling
Rising interest rates and inflation are pushing homeowners to focus on more manageable remodeling projects rather than large-scale renovations. This trend has led to increased spending on minor home improvements, benefiting retailers like Home Depot, despite a decline in bigger, high-cost renovations. Homeowners are still remodeling, but they’re opting for budget-friendly updates like repainting rooms or upgrading fixtures instead of undertaking major projects. According to PYMNTS, rising interest rates mean increased borrowing costs. For potential homebuyers, this translates to decreased purchasing power, effectively putting the brakes on their homeownership aspirations.…
Read MoreHBF Opens Applications for Women Into Home Building Initiative
The Home Builders Federation has launched the fifth cohort of its Women into Home Building program, offering over 30 placements to attract more women into site management careers. Since 2023, the program has engaged 238 women, with 20 securing jobs in the industry. The initiative aims to diversify and enhance leadership in home building. According to CIOB People, the Home Builders Federation (HBF) has launched the fifth cohort of its Women into Home Building programme to attract more women into site management careers. The announcement follows the closure of Women…
Read MoreAlabama Housing Market Showing Positive Trends in 2024
Alabama’s real estate market is showing strong growth, with home sales in July 2024 up 0.9% year-over-year and 13.1% from June, and total sales volume rising to $1.51 billion. The median home price also increased, reflecting a robust housing market that has seen six consecutive months of sales growth. This trend suggests continued strength in Alabama’s economy, supported by the real estate sector’s significant economic impact. Yellow Hammer says, as the summer comes to an end, Alabama’s real estate market is showing promising growth – and that growth doesn’t seem…
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