Construction costs accounted for 64.4% of the average price of a new home in 2024 compared to 60.8% in 2022, according to NAHB’s most recent Cost of Construction Survey.
Nonfarm payroll employment increased in 42 states and the District of Columbia in December compared to the previous month, while it decreased in seven states. Wyoming reported no change during this time. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 256,000 in December, following a gain of 212,000 jobs in November. On a month-over-month basis, employment data was most favorable in Texas, which added 37,500 jobs. Florida came in second (+18,000), followed by California (+15,000). A total of 8,000 jobs were lost across seven states, with Oregon reporting the steepest job losses at 3,700. In percentage terms, employment increased the highest in Missouri at 0.4%, while Vermont saw the biggest decline at 0.2% between November and December. Year-over-year ending in December, 2.2 million jobs have been added to the labor market across 48 states and the District of Columbia. This is a 1.4% increase compared to the December 2023 level. West Virginia reported no change, while South Dakota lost 1,000 jobs. The range of job gains spanned from 2,000 jobs in Maine to 284,200 jobs in Texas. In percentage terms, the range of job growth spanned 3.6% in Idaho to 0.3% in Maine. South Dakota declined by 0.2%. Across the nation, construction sector jobs data 1—which includes both residential and non-residential construction—showed that 26 states reported an increase in December compared to November, while 20 states lost construction sector jobs. The four remaining states and the District of Columbia reported no change on a month-over-month basis. Washington, with the highest increase, added 4,000 construction jobs, while New York, on the other end of the spectrum, lost 4,400 jobs. Overall, the construction industry added a net 8,000 jobs in December compared to the previous month. In percentage terms, South Dakota reported the highest increase at 1.9% and Mississippi reported the largest decline at 2.2%. Year-over-year, construction sector jobs in the U.S. increased by 196,000, which is a 2.4% increase compared to the December 2023 level. Texas added 31,500 jobs, which was the largest gain of any state, while California lost 12,400 construction sector jobs. In percentage terms, Alaska had the highest annual growth rate in the construction sector at 18.9%. Over this period, West Virginia reported the largest decline of 3.4%. For this analysis, BLS combined employment totals for mining, logging, and construction are treated as construction employment for the District of Columbia, Delaware, and Hawaii. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.
Housing market conditions vary significantly by region because of numerous factors unique to each area. With this in mind, the NAHB economics group developed a new tool providing a snapshot of economic conditions in each metro area across the U.S.
The White House Office of Management and Budget (OMB) has ordered a temporary pause on many federal grants, loans or financial assistance programs effective on Tuesday, Jan. 28 at 5 p.m. ET.
Skid steer loaders are commonly used on construction jobsites for their wide variety of uses, and it is very important these machines be used safely by a properly trained operator.
On a year-over-year basis, home prices grew at a rate of 3.75% for November, according to the S&P CoreLogic Case-Shiller Home Price Index (NSA). This marks an increase from the 3.59% growth rate recorded in October but is down from a peak of 6.54% in March 2024. By Metro Area In addition to tracking national home price changes, the S&P CoreLogic Index (SA) also reports home price indexes across 20 metro areas. Compared to last year, 19 of 20 metro areas reported a home price increase. There were 10 metro areas that grew more than the national rate of 3.75%. The highest annual rate was New York at 7.37%, followed by Chicago at 6.22% and Washington DC at 5.90%. Denver grew at the smallest rate at 0.92%, followed closely by Dallas at 1.02%. Tampa was the only area that experienced a decline from last year at a rate of -0.33%. By Census Division A similar index, the Federal Housing Finance Agency Home Price Index (SA) publishes not only national data but also data by census division. The national year-over-year rate was 4.22% for November. Meanwhile, the division with the highest year-over-year rate was 7.67% in New England, while the lowest was 1.81% in West South Central. A three-month trend in rates is shown for each division below. The FHFA Home Price Index releases their metro and state data on a quarterly basis, which NAHB analyzed in a previous post. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.
Career and Technical Education (CTE) school leaders and home builders association staff discuss productive partnership strategies and recruitment campaigns in a Feb. 3 webinar.
NAHB’s Senior Officers will host a series of regional Virtual Townhall Meetings on Tuesday, Feb. 4. The meetings are an important opportunity for members and HBA leadership to provide feedback to NAHB leadership on emerging issues in their local communities.
Sales of newly built, single-family homes in December increased 3.6% to a 698,000 seasonally adjusted annual rate from an upwardly revised November number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in December was up 6.7% compared to a year earlier.
Despite higher mortgage rates and elevated home prices, existing home sales jumped to a 10-month high in December, marking three monthly gains in annual growth, according to the National Association of Realtors (NAR). However, existing home sales end 2024 at 4.06 million, the lowest level since 1995 as the median price reached a record high of $407,500 in 2024. While inventory improves and the Fed continues lowering rates, the market faces headwinds as mortgage rates are expected to stay above 6% for longer due to an anticipated slower easing pace in 2025. The prolonged rates may continue to discourage homeowners from trading existing mortgages for new ones with higher rates, keeping supply tight and prices elevated. As such, sales are likely to remain limited in the coming months due to elevated mortgage rates and home prices. Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, rose 2.2% to a seasonally adjusted annual rate of 4.24 million in December, the highest level since February 2024. On a year-over-year basis, sales were 9.3% higher than a year ago, the largest annual gain since June 2021. However, total sales in 2024 fell to 4.06 million, breaking below 2023’s record low of 4.10 million and marking the lowest annual level since 1995. The first-time buyer share rose to 31% in December, up from 30% in November and 29% in December 2023. The existing home inventory level fell from 1.33 million in November to 1.15 million units in December but is up 16.2% from a year ago. At the current sales rate, December unsold inventory sits at a 3.3-months’ supply, down from 3.8-months last month but up from 3.1-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 35 days in December, up from 32 days in November and 29 days in December 2023. The December all-cash sales share was 28% of transactions, up from 25% in November 2024 but down from 29% in December 2023. All-cash buyers are less affected by changes in interest rates. The December median sales price of all existing homes was $404,400, up 6.0% from last year. This marked the 18th consecutive month of year-over-year increases. The median condominium/co-op price in December was up 4.5% from a year ago at $359,000. This rate of price growth will slow as inventory increases. Geographically, three of the four regions saw an increase in existing home sales in December, ranging from 2.6% in the West to 3.9% in the Northeast. Sales in the Midwest fell 1%. On a year-over-year basis, sales grew in all four regions, ranging from 6.5% in the Midwest to 12.9% in the West. The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 77.3 to 79.0 in November due to improved inventory. This marks the highest level since February 2023. On a year-over-year basis, pending sales were 6.9% 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.