
Housing Starts Strong in November; Multifamily Seeing Growth in Suburbs
There are now 752,000 single-family homes under construction, up 28% from a year ago.
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More New Homes Being Built in Established Neighborhoods
One-quarter of newly built single-family detached homes were built in already established neighborhood in 2020.
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Builders Confident, but Concerned About Affordability
Builders are confident about the current housing market and the next six months, despite challenges facing the industry.
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Pandemic Influencing Features in New Construction
Four-bedroom homes, two-story foyers and porches have all seen increases in popularity in newly built single-family homes.
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Housing Starts, Builder Confidence Down
“While the demographics and interest for homebuying remain solid, higher costs and material access issues have resulted in lower levels of home building and even put a hold on some new home sales,” said NAHB Chief Economist Robert Dietz. “While these supply-side limitations are holding back the market, our expectation is that production bottlenecks should ease over the coming months and the market should return to more normal conditions.”
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CEO Corner: Challenges Homebuilders Are Facing
Both Dan Durden, the CEO of the Pennsylvania Builders Association, and Dr. Robert Dietz, chief economist for the National Association of Home Builders, reported that costs of building materials have been increasing dramatically.
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Builder Confidence Soars
“Housing has clearly been a bright spot during the pandemic and the sharp rebound in builder confidence over the summer has led NAHB to upgrade its forecast for single-family starts, which are now projected to show only a slight decline for 2020,” said NAHB Chief Economist Robert Dietz. “
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Builder Confidence Spikes in May
The National Association of Home Builders/Wells Fargo Housing Market Index showed builder confidence reached 37, after dropping to 30 in April.
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Buyers report struggle to find homes
Half of buyers in a recent survey, who have been looking for a home for a minimum of three months, said they haven’t bought a home yet because they can’t find a home they are able to afford, an increase of 5% year-to-year.
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Builder confidence remains strong
“Builders report solid demand for single-family homes. However, they continue to grapple with labor shortages, a dearth of buildable lots and rising construction costs that are making it increasingly challenging to build homes at affordable price points relative to buyer incomes,” said NAHB Chairman Greg Ugalde.
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