Led by larger urban metro markets, single-family growth rates are showing signs of a turnaround as moderating mortgage rates and a lack of existing inventory are contributing to a gradual upward trend, according to the latest findings from the National Association of Home Builders (NAHB) Home Building Geography Index (HBGI) for the fourth quarter of 2023.
New home sales ticked upward in January, according to the latest Monthly New Residential Sales Report. Released on Monday by the U.S. Census Bureau and the Department of Housing and Urban Development, the latest data indicates that sales of new single‐family houses in January 2024 were at a seasonally adjusted annual rate of 661,000. This is 1.5% above the revised December rate of 651,000.
Read HBS Dealer
While higher interest rates pushed single-family starts down in 2022 and 2023, production should move on a gradual upward path in 2024 as the Federal Reserve is on track to cut rates during the second half of the year with inflation slowing, according to economists speaking at the National Association of Home Builders (NAHB) International Builders’ Show in Las Vegas on Tuesday.
Read more at NAHB
Dramatic year-over-over lumber price deflation is beginning to enter normal territory—at least, single-digit territory. The Producer Price Index shows softwood lumber down 9.0 percent year-over-year unadjusted in January. It was negative 49.3 percent year-over-year in March 2023.
Read HBS Dealer
According to NAHB’s analysis of data from the Census Bureau’s Quarterly Starts and Completions by Purpose and Design, there were approximately 22,000 single-family built-for-rent (SFBFR) starts during the fourth quarter of 2023. This is more than 29% higher than the fourth quarter of 2022. Over the last four quarters, 75,000 such homes began construction, which is almost a 9% increase compared to the 69,000 estimated SFBFR starts in the four quarter prior to that period.
Read LBM Journal
Over 2023, the total number of single-family permits issued year-to-date (YTD) nationwide reached 909,227. On a year-over-year (YoY) basis, this is 6.5% below the December 2022 level of 972,180.
In the third quarter of 2023, rising mortgage rates, elevated construction costs and a limited inventory of homes pushed housing affordability to its lowest level in more than a decade. Recent fourth-quarter data from NAHB reveals a continuing challenge, with only 37.7% of homes sold between October and December 2023 deemed affordable for families earning the U.S. median income of $96,300. Despite this affordability gap, new single-family home construction is on the rise, bringing more demand for doors and windows.
Read DWM
The U.S. Department of Commerce has signaled that it plans to raise tariffs later this year on imports of Canadian softwood lumber products from the current rate of 8.05% to about 14% following its annual review of existing tariffs.
Read more at NAHB
NAHB analysis of Census data shows that private residential construction spending rose 1.4% in December, marking three months of gains. It stood at a seasonally adjusted annual pace of $911.7 billion. The 2023 annual spending on private residential construction was $864.9 billion, 5.8% lower than the 2022 annual totals.
Read LBM Journal
In the midst of defending itself from a lawsuit for allegedly providing defective products, door and window manufacturer Associated Materials is embroiled in a series of lawsuits involving Markel American Insurance Co. (Markel). Associated Materials accuses Markel of breaching its duty by refusing to pay the rates billed by the legal representation the company chose to hire.
Read DWM
World Millwork Alliance (WMA) 54 TH Annual Convention & Tradeshow will hold its’ premier event at the Memphis Cook Convention Center from September 11-15, 2018. WMA will offer Veterans and Students complimentary access to the exhibit hall during Millwork Career Day on Friday, September 14, 2018 during the show hours of 10:00 a.m. – 3:30 p.m.
WMA welcomes Veterans and Students to explore a career in the millwork industry. Learn from worldwide millwork professionals while viewing the finest millwork products. Meet with industry distributors and manufacturers about the opportunities in a millwork career.
Pre-registration for a name badge is available by completing a WMA Registration Form. Any local Student or Veteran who has pre-registered will pick up their complimentary “Expo – One Day Pass” with a valid student ID or Veteran ID at the WMA registration desk in the Memphis Cook Convention Center.
Veterans must show a Veteran’s Administration (VA) identification card to receive an “Expo-One Day Pass” and to gain entrance into the exhibit hall on Friday, September 14, 2018.
Students must show a valid Student photo I.D. card to receive an “Expo-One Day Pass” and to gain entrance into the exhibit hall on Friday, September 14, 2018.
Pre-registration is open until August 13, 2018; thereafter, registration is onsite at the WMA registration desk in the Memphis Cook Convention Center.
