News & Opinions
The latest news and insights from Hanley Wood’s outspoken experts and key thought-leaders throughout the residential and commercial design and construction industry.
Associated Builders and Contractors, Inc / October 2, 2014
The Associated Builders and Contractors (ABC) Construction Confidence Index (CCI) increased across all three indices in the first half of 2014. The CCI reflects construction industry prospects using three measured categories – revenues, profit margins and hiring. Each index now stands at a post-recession high implying that nonresidential construction’s recovery, already robust, is positioned to continue into the year ahead.
During the first six months of 2014 (readings above 50 indicate growth):
- Sales expectations rose from 63.2 to 68.2;
- Profit margin expectations expanded
Robert Dietz / Eye on Housing / September 22, 2014
A recent survey of younger Americans illustrates that the goal of homeownership remains an important part of the American Dream.
The economic future of Millennials is key to the future of housing demand. A record number of individuals aged 18 to 34 years are delaying household formation as a consequence of the Great Recession. In a recent post, we referred to this situation as the Great Delay, as slow wage growth and rising student loan burdens have reduced attainment of traditional goals associated with the American Dream, including marriage and homeownership.
An important researchRead More
New-home sales in August reached the highest annualized pace since 2008. But many builders and economists still expect sales for this year to underwhelm, ultimately either matching or only slightly exceeding last year’s level.
The reason lies in the difference between the volatility of monthly home-sales figures from the Commerce Department and the underlying trajectory of the market established over the past year. The latter shows a pace, on average, of sluggish but steady growth.
Meanwhile, the frothy gain in August new-home sales reported Wednesday by the Commerce Department canRead More
David Crowe / Eye on Housing / September 19, 2014
Housing starts fell in August, according to the most recent government data, but the NAHB/Wells Fargo Housing Market Index (HMI) rose to a post-recession high. The market data suggest future increases in single-family building as the sector expands to higher levels of activity more consistent with long-run rates of household formation and population growth.
For August, the Census Bureau and HUD reported that the seasonally adjusted annual pace of housing starts was 956,000, 14.4% below the July pace of 1.117 million starts. It is important to note that much of the decline was concentratedRead More
Construction Marketing Association / September 19, 2014
Despite many positives in the construction industry right now such as the high demand for skilled labor and that most construction firms are willing to prove higher wages for skilled workers, Alan Greenspan is pointing a finger of blame in construction’s direction.
According to a report from Bloomberg, Greenspan, who served as chairman of the Federal Reserve between 1987 and 2006, said Tuesday the U.S. economic rebound from the recession that ended five years ago, has been held back by the construction industry’s own slow rebound.
“What we see is that construction is deadRead More