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.
Eye on Housing / NAHB / November 14, 2013
Strengthening house prices and increased interest rates in metros across the country contributed to lower housing affordability in the third quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
In all, 64.5 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $64,400. This is down from the 69.3 percent of homes sold that were affordable to median-income earners in the second quarter, and the biggest HOI decline since the second quarterRead More
David Crowe / NAHB / October 3, 2013
Recent data concerning consumer and builder confidence suggest that at the end of the summer a pause occurred with respect to economic improvement. Adding to this is the uncertainty associated with the shutdown of the federal government. Besides the direct impact from lost or delayed government services, the shutdown is also a warning concerning the impending political debate regarding the debt ceiling, an issue which could have significantly larger economic impacts, including higher interest rates.
Direct impacts from the ongoing shutdown include possible delays in FHA-insured single-familyRead More
Michael Neal / NHAB / October 3, 2013
Today, NAHB hosted its Fall Construction Forecast Webinar (CFW) featuring three renowned industry experts. NAHB Chief Economist David Crowe was joined by Mark Zandi, Chief Economist at Moody’s Analytics, and NAHB Senior Economist Robert Denk to present views on the outlook for the US economy and the housing market more specifically.
Here are the major points from today’s presentation:
David Crowe, Chief Economist at NAHB, noted that economic growth is expected to accelerate over the coming years and recent growth has reflected improvement in the housing market. At the same time, employmentRead More
Robert Dietz / NAHB / October 3, 2013
Housing is an important source of economic growth. As of the second quarter of 2013, housing’s share of gross domestic product (GDP) was 15.6%, with home building yielding 3.1 percentage points of that total.
Housing-related activities contribute to GDP in two basic ways.
The first is through residential fixed investment (RFI). RFI is effectively the measure of the home building and remodeling contribution to GDP. It includes construction of new single-family and multifamily structures, residential remodeling, production of manufactured homes and brokers’ fees. For the secondRead More
Nick Timiraos / The Wall Street Journal / October 1, 2013
Fear that the housing market’s recovery is stalling has been overdone, say economists at Goldman Sachs in a new report.
The paper — entitled “Where is the pent-up housing demand?” — suggests that housing demand among the young has been suppressed due to cyclical issues not structural ones.
Homeownership hasn’t fallen out of favor and student-debt levels aren’t the main culprits for lower housing demand among young buyers, write economists Hui Shan and Eli Hackel. Instead, they suggest that the economic downturn is most responsible for muted homeownership gains among youngerRead More