National Association of Home Builders’ Post

While the rise in build-for-rent homes reflects the current market, I believe we can reverse this trajectory and make homeownership more attainable by addressing key barriers: Limit Government Interference: Excessive regulations are driving up the cost of building homes. Streamlining the permitting process can encourage more development of affordable, owner-occupied homes. Lower Property Taxes: High property taxes are a major deterrent for prospective homeowners. Reducing these taxes, especially for first-time buyers, could make owning a home more feasible and attractive. Cut Development Fees: Builders are often burdened with excessive development fees that increase the overall cost of homes. Reducing or waiving these fees for housing projects can lead to lower prices for buyers and spur more construction. By focusing on these areas, we can start shifting the market back toward homeownership and ensure that more people have the opportunity to own their own homes. #Homeownership #AffordableHousing #PolicyChange #RealEstate

It’s ok if you disagree. I won’t be offended. But I simply don’t see how Built for Rent benefits renters, nor do I see how it benefits individuals seeking to own SFR. I see how it benefits real estate investors ….yet again. This doesn’t help renters position themselves down the road to save for mortgages or increase credit scores for mortgages (unless the owners are paying extra to report to credit bureaus.) This also doesn’t add regular SFR inventory for buyers. Yes it’s good for new construction industry and investors but I’m just not seeing a long or even short term solution to the SFR affordability epidemic that is currently putting homeownership out of reach while inventory remains painfully low and values painfully high.

New U.S. home construction picked up in June, though a decline in single-family housing starts to an eight-month low underscored a real estate market challenged by high interest rates. https://lnkd.in/gJk3H45N #CapitalFundingNW #TheFundingMachine #housing #realestate #interestrates

Apartment Starts Fall 43% From 2023: Starts for U.S. multifamily developments of more than five units dropped 43.7% in March compared with the same month in 2023 Permitting for apartments, a leading indicator of development, dropped 17.5% year-over-year in March but eked out a gain of 0.8% from February. Single-family home starts, meanwhile, were up 21.2% annually, but down 12.4% from a month earlier. Though apartment starts are down, the number of completed units entering the market is rising, a legacy of higher construction rates in recent years. https://lnkd.in/gHDkuzUG

HOUSING STARTS | Due to a decline in single-family home construction, housing starts fell 4.3% in December to an annual rate of 1.46 million units. Building permits, however, increased by 1.9% over the course of the month - a measure of future construction. https://lnkd.in/gbYpxfBF

Homebuilding News 🏗️ According to a recent U.S. News & World Report article, new construction is on the rise as we head into the spring buying season. This is positive news for the housing market, which had seen some softening in recent months. Here are some key takeaways from the article: 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐏𝐞𝐫𝐦𝐢𝐭𝐬: The number of permits issued for new construction projects has risen for the past two months, indicating a pick-up in builder confidence. 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐟𝐨𝐫 𝐌𝐨𝐫𝐞 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲: An increase in construction could eventually lead to more homes available for purchase, potentially easing affordability concerns. 𝐌𝐚𝐫𝐤𝐞𝐭 𝐒𝐭𝐢𝐥𝐥 𝐔𝐧𝐜𝐞𝐫𝐭𝐚𝐢𝐧: While this is a positive sign, interest rates and overall economic factors will continue to influence the housing market. #HousingMarket #Homebuilding #BuyingSeason #NewConstruction #USNews https://lnkd.in/e-zXMTQQ

Total housing starts rose by 3% to a 1.35 million annualized rate last month, fueled by a 19.6% increase in multifamily construction, according to government data released Wednesday. In contrast, starts of single-family homes fell for the fourth consecutive month. #HousingMarket #Construction #RealEstate #Multifamily #HousingStarts

There's a significant construction pipeline in the U.S. with 1 million apartment homes underway, expanding current inventory by roughly 5%. When examining vacancy rates, we see that they've risen from a low of 5.0% in 2021 to 7.8% by Q3 2023. Despite this, the multifamily sector initially saw high demand post-pandemic and a cooling period was expected. In 2021, the US absorbed a remarkable 536,000 apartment units, more than any previous year. However, construction starts have dropped by over 60%, indicating a likely short-lived oversupply. Renting has become $400 a month cheaper than a 30-year fixed mortgage, excluding taxes, maintenance, insurance, etc. National rent growth has slowed to 1.3% in Q3 2023. Maintaining occupancy is crucial to maximize a building's potential, considering the declining rental prices. In Denver specifically, we have seen permitting fall to zero in 2023 which is very representative of the short-lasting "oversupply" that Denver will experience heading into 2024-25.

Housing Starts Surge in November: New residential construction activity surged in November, rising 14.8% from October’s level to an annual rate of 1,560,000 housing starts, 9.3% higher year-over-year. This surge was due to both an 18.0% increase in single-family housing starts month-over-month and an 8.9% increase in multi-family starts. The post Housing Starts Surge in November appeared first on Realtor.com Economic Research. https://lnkd.in/g9Ns3THw #AZrealestate #Arizonahomes #Phoenixrealestate

Not sure why the article even mentioned a Single-Family-Only Household Formation gap; completely incomplete narrative. Single + Multi-family reveals a cumulative '2012-2023 HH Formation:New Dwelling Unit' gap of 2.5M dwelling units (DU). Some things to think about: • in 2012, the Existing Home Inventory was 2M+ homes. 1M+ MORE homes than the Jan 2024 print of ~1M homes. • Yes, the US probably tore down 500-700K homes during that time. But one could argue that - including ADUs, renovation-based Dwelling Units, multi-generation home design, and unconventional living arrangements - ostensibly, teardowns net out. • This article doesn't account for the Census weighting error discovered by the Chicago Fed, resulting in a 2M+ overstated foreign-born population growth. So, do we really have a total-unit housing shortage? Possibly not. The numbers gap is really about the product than the totals. Builders, trades, and suppliers should be gearing DOWN for smaller, denser new-build home designs. And gearing UP for conversion-style commercial and residential renovations/retrofits. #housingshortage #offsiteconstruction #industrializedconstruction #adaptivereuse #buildingmaterials #buildingproducts