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State & National Updates
Eye on the Economy

Builders Confident at Year's End

Confidence among single-family home builders reached a post-recession high in December, following the election of a new president who promises regulatory relief and increased economic growth. Sales in November also showed positive trends, as new home sales jumped more than 5%—almost 13% higher than the same time last year. Existing home sales also edged up in November, with a four-months' supply of inventory.

 

New home construction was disappointing in November—down nearly 19% for the month—largely due to an unusual decline for multifamily starts. However, home building in 2016 performed well overall. Single-family starts are up almost 10% for the year, while multifamily starts are down about 4%.

 

Despite an ongoing scarcity of lots and labor, we anticipate continued growth of residential construction in 2017. Economic growth should also improve next year, compared to the relative weakness experienced in 2016. The full NAHB economic and housing forecast will be unveiled during the NAHB International Builders' Show.

 

–NAHB Chief Economist Robert Dietz

 

Building Conditions

 

Absorption Data Show Multifamily Market Leveling Off

Following a peak in the third quarter of 2015, signs indicate a slight slowdown.

 

Construction Employment Across States

States with the highest annual growth rates are Nevada, Iowa and Washington. 

 

Builder Confidence Closes Year on a High Note

Presidential election spurs Housing Market Index to its highest reading since July 2005.

 

Prices Increase for Most Building Materials 

November saw costs rise for OSB, gypsum products and ready-mix concrete.

 

Home Sales 

 

New Home Sales Grow

November's sales pace was the second highest since the end of the recession.

 

Financing Sources for New Homes

Portion of conventional mortgages in the third quarter was the most since 2008.

 

Existing Sales' Year-End Sprint

Last month's increase lifted sales to the highest pace in nearly a decade. 

 

Economic Insights

 

3rd Quarter GDP Growth

Revised estimates show real GDP grew at a 3.5% seasonally adjusted annual rate.

 

Moderate Rise for CPI in November

Consumer inflation slowed from 4.37% to 2.43%.

 

Housing Starts Fall in November

Totals were down 18.7%, following a strong October pace. 

 

Top Posts of 2016

 

Economic Impact of Home Building

Constructing 1,000 single-family homes generates 2,975 jobs and $111 million in federal revenue.

 

Where are the Nation's Second Homes?

Counties in New York, Pennsylvania and Utah are among the hot spots for these houses. 

 

Regulatory Costs Add Up in a Big Way

Nearly one quarter of the price for an average new home stems from government fees.

 

Lots in 2015 are Smallest on Record

Median lot size of a new single-family home dropped below 8,600 square feet.

 

How Much Time it Takes to Build a Single-Family Home

Survey shows average completion time is about seven months.