The Department of Housing and Urban Development released a new Federal Flood Risk Management Standard (FFRMS) in April 2024 that will affect both single-family homes and multifamily properties. Compliance will be required as of Jan. 1, 2025.
The 2024 Fall Recruitment Competition is nearing the end of its three-month run, with the deadline approaching on Nov. 30. With a goal of recruiting as many new NAHB members as possible, Builder and Associate members have been working hard to grow the Federation and earn a trip to New York City awarded by LG and Signature Kitchen Suite.
The missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties. The multifamily segment of the missing middle (apartments in 2- to 4-unit properties) has generally disappointed since the Great Recession. However, there was a noticeable uptick for this type of housing construction in the most recent data. For the third quarter of 2024, there were 6,000 2- to 4-unit housing unit construction starts. This is double the pace of construction from a year prior. As a share of all multifamily production, 2- to 4-unit development was just above 6% of total multifamily development for the third quarter. However this is still lower than recent historic trends. From 2000 to 2010, such home construction made up a little less than 11% of total multifamily construction. Construction of the missing middle has clearly lagged during the post-Great Recession period and will continue to do so without zoning reform focused on light-touch density. But recent data offer hope for additional housing supply for these kind of structures. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.
An expected impact of the virus crisis was a need for more residential space, as people used homes for more purposes including work. Home size correspondingly increased in 2021 as interest rates reached historic lows. However, as interest rates increased in 2022 and 2023, and housing affordability worsened, the demand for home size has trended lower. With lower long-term interest rates coming in view, will new single-family home size reverse and move higher in 2025? According to third quarter 2024 data from the Census Quarterly Starts and Completions by Purpose and Design and NAHB analysis, median single-family square floor area was 2,158 square feet, just off the lowest reading since the second half of 2009. Average (mean) square footage for new single-family homes registered at 2,348 square feet. The average size of a new single-family home, on a one-year moving average basis, trended lower to 2,366 square feet, while the median size is at 2,150 square feet. Home size increased from 2009 to 2015 as entry-level new construction lost market share. Home size declined between 2016 and 2020 as more starter homes were developed. After a brief increase during the post-COVID building boom, home size has trended lower due to declining affordability conditions. As interest rates decline, new home size could level off and increase in the quarters ahead. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.
Carl Harris, chairman of the National Association of Home Builders (NAHB) and a custom home builder from Wichita, Kan., issued a statement regarding President-elect Donald Trump’s pick of Scott Turner as the next secretary of the Department of Housing and Urban Development.
Pro Builder will host a housing outlook webinar, featuring NAHB AVP for Forecasting & Analysis Danushka Nanayakkara-Skillington, on Dec. 4 at 3 p.m. ET. Join as one of the industry's leading economists dives into critical issues such as inflation, interest rates, Fed policy, and the future of construction labor.
NAHB has created a toolkit to explore impact fees and their potential effects on the local community, and to provide strategies for achieving balanced infrastructure financing solutions.
NAHB Chairman Carl Harris issued the following statement after a group of bipartisan House members announced the formation of a Yes in My Backyard Caucus.
NAHB is built on its network of shared knowledge and talents. That’s why it’s important to recognize the many hardworking and passionate home building professionals who consistently help with membership and recruitment efforts during the annual November Spike Appreciation Month.
Existing home sales in October rebounded from a 14-year low and posted the first annual increase in more than three years, as buyers took advantage when mortgage rates briefly reached a 2-year low in late September, according to the National Association of Realtors (NAR). While elevated home prices persist due to the lock-in effect, we expect sales activity to increase as mortgage rates moderate with additional Fed easing. Improving inventory should help slow home price growth and enhance affordability. Homeowners with lower mortgage rates have opted to stay put, avoiding trading existing mortgages for new ones with higher rates. This trend is driving home prices higher and holding back inventory. With the Federal Reserve beginning its easing cycle at the September meeting, mortgage rates are expected to gradually decrease, leading to increased demand and unlocking lock-in inventory in the coming quarters. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 3.4% to a seasonally adjusted annual rate of 3.96 million in October. On a year-over-year basis, sales were 2.9% higher than a year ago, ending a 38-month streak of year-over-year declines since July 2021. The first-time buyer share rose to 27% in October, up from 26% in September but down from 28% in October 2023. The existing home inventory level rose from 1.36 million in September to 1.37 million units in October and is up 19.1% from a year ago. At the current sales rate, September unsold inventory sits at a 4.2-months supply, down from 4.3-months last month but up 3.6-months a year ago. This inventory level remains low compared to balanced market conditions (4.5 to 6 months’ supply) and illustrates the long-run need for more home construction. Homes stayed on the market for an average of 29 days in October, up from 28 days in September and 23 days in October 2023. The October all-cash sales share was 27% of transactions, down from 30% in September and 29% a year ago. All-cash buyers are less affected by changes in interest rates. The October median sales price of all existing homes was $407,200, up 4.0% from last year. This marked the 16th consecutive month of year-over-year increases. The median condominium/co-op price in October was up 1.6% from a year ago at $360,300. This rate of price growth will slow as inventory increases. Geographically, all four regions saw an increase in existing home sales in October, ranging from 1.3% in the West to 6.7% in the Midwest. On a year-over-year basis, sales rose 1.1%, 2.3%, and 8.5% in the Midwest, South and West. Sales in the Northeast stayed unchanged. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 70.6 to 75.8 in September due to improved inventory and lower mortgage rates in late summer. On a year-over-year basis, pending sales were 2.6% higher than a year ago per National Association of Realtors data. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.