National Outlook

Housing Affordability Falls to 10-Year Low

Builder / August 13, 2018 Rising home prices and interest rates pushed housing affordability to a 10-year low in the second quarter of 2018, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI). In all, 57.1% of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income o …

Is the Market Turning?

John McManus / Builder / August 13, 2018 Housing, and its varied ecosystem of private, public, and community enterprises have always followed a cyclical path, and the current cycle may be shifting. That doesn’t mean individual organizations and people don’t continually try to free themselves from ties to the cycle. Now may be the moment we see a few such organizations and people go into action to …

Will Rising Interest Rates Kill the American Dream?

As rates inch higher, affordability concern grows in the housing sector. By Robert Dietz Adobe Stock/Gajus Interest rates are rising. Due to growing concerns over a tight labor market, improved economic growth prospects, and rising inflation expectations, the Federal Reserve has raised the federal funds rate twice in 2018 thus far, with more hikes expected to come. This increase in short-term inte …

View More

Local View

DENVER 2Q18 HOUSING: Robust Start Levels and Affordability Pressures Push Growth into Condomininium and Townhome Product

Quarterly New Home Starts are up 20% over 2Q17 levels – and at the highest level for any quarter since 3Q06 Annual New Home Starts are up 14% YoY and are also at the highest levels since 2006, with the highest growth in condominiums (up 112% since 2Q17). Affordability Pressures continue to define the market, with only 23% of new starts priced below $400k and the highest growth in the $600k-$699k p …

SOUTH FLORIDA HOUSING 2Q18: New Home Market Continues to Rebound from Hurricane Irma; Broward & Treasure Coast Show Strongest QoQ Growth

2Q18 Annual New Home Starts are down 3% from 2Q17, but Quarterly Starts are up 9% QoQ, showing a rebound from effects of Hurricane Irma. Broward County had the biggest jump in 2Q18 new housing activity, with quarterly starts up 24% and closings up 33% from 1Q18; Miami-Dade saw declines with quarterly starts down 7% and closings down 21% from the prior quarter. Lennar’s Aqua Bella moves ahead of Tr …

HOUSTON HOUSING 2Q18: Still the #2 Market for New Home Starts – Builders Move Towards Smaller Lots to Continue to Deliver Affordable Product

Through 2Q18, Houston is still the #2 market for housing starts, trailing only the Dallas / Ft. Worth region; Annual new home starts are up 6.8% from 2Q17 levels, with growth greatest in the $200k to $299k price band (up 14.3% YoY); We are seeing builders increasingly looking for smaller lot sizes – moving from 50’ lots to 40’ and 45’ lots – as they look for ways to continue to deliver attainable …

View More