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.
NAHB / October 16, 2013
Builder confidence in the market for newly built, single-family homes fell two points in October from a downwardly revised reading in the previous month to a level of 55 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today.
“Builder optimism remains above 50 and we are still seeing signs of pent-up demand in many markets across the country,” said NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “This slight dip in builder sentiment is the result of continuing challenges in the marketplace with regard to the cost and availabilityRead More
Robert Denk / NAHB / September 19, 2013
Are home builders more confident than they should be? There has been some discussion suggesting that the relationship between the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) and single family housing starts is broken, or at least strained lately. Let’s take a look.
The HMI and starts track together well, no question. But they don’t move in lockstep, that’s clear throughout their history. So how much and when should they differ?
The gap between the HMI and starts appears widest at turning points and throughout the most recent boom/bust/recovery cycle.Read More
Paul Emrath / NHAB / March 13, 2013
In the fourth quarter of 2012, NAHB’s Multifamily Production Index (MPI) increased two points to 54, marking the fourth straight quarter the index has been over the key break-even point of 50. The MPI is an overall measure of builder and developer sentiment on current conditions in the apartment and condominium market.
The MPI is built from three components, capturing industry sentiment on production of low-rent, market-rate rental, and “for-sale” units (or condominiums). Each component lies on a scale of 0 to 100, where a number over 50 means more builders say conditions are improvingRead More
Residential construction fell in January but a jump in permits for future home building to a 4-1/2 year high offered hope the housing market recovery remains on track.
Another report on Wednesday showed wholesale prices rose for the first time in four months in January as rising food costs offset weak gasoline prices. However, sluggish economic growth should keep price pressures muted.
Housing starts dropped 8.5 percent last month to a 890,000-unit annual rate, pulled down by a sharp drop in the volatile multi-family unit category, the Commerce Department said.
But starts for single-familyRead More
David Crowe / NAHB / February 19, 2013
The NAHB/Wells Fargo Housing Market Index (HMI) continued its pause in February with an index value of 46, down one point from the December and January level of 47. Builders remain just shy of the 50 mark where a majority of builders are optimistic versus those that are not. Nevertheless, the index was rising consistently from April to December 2012 as builders saw more serious buyers in their models and offices. The plateau in the most recent three months reflects consumers rechecking their own economic outlook and discerning their ability to pay a mortgage over the next 30 years.