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State & National Updates Archives for 2016-06

Weekly News Digest of the National Association of Home Builders

Economics


Housing Recovery Strengthens, but Challenges Remain

Harvard study notes Americans remain optimistic about homeownership.


New Home Sales Post Solid Reading in May

Though down from April, the sales market continues to make overall gains.


Inside Politics


House Votes to Reinstate Health Reimbursement Arrangements

Legislation would help workers obtain health insurance.


Senate Bill Would Reform Federal Housing Programs

Measure includes many NAHB-supported bipartisan fixes.


House GOP Tax Plan Would Impact Key Housing Tax Provisions

NAHB Chairman Ed Brady cites major concerns, pledges to work with House leadership.


White House Issues New Rules to Minimize Drone Crashes

FAA yet to release long-term framework for commercial drone use. 


The Weekly News Digest of the National Association of Home Builders

Economics


Builder Confidence Resumes Upward Momentum

After holding steady for four months, builder sentiment is on the rise. 


Housing Starts Hold Firm in May

Groundbreaking on single-family homes inches up.


Inside Politics


House to Vote this Week on NAHB-Supported Health Care Bill

Measure would reinstate the use of Health Reimbursement Arrangements. 


PWB Strengthens Clout of BUILD-PAC

Council is a high-profile advocate for NAHB's political action committee.


Rules & Regulations


Don't Run Afoul of New Silica Rule

Webinar explains how the rule will affect construction job sites.


New Resources for Complying with Lead Paint Rule

Toolkit helps tackle inspections and recertifications.


HUD Proposes Using ZIP Code-Based Fair Market Rents

These changes would apply to the Housing Choice Voucher program.
 


Surprising Labor Market Data Pauses the Fed

Surprising Labor Market Data Pauses the Fed

 

A weak labor market report clearly influenced the Federal Reserve's decision to keep interest rates steady this week. The Fed noted that job gains have slowed and business investment has been soft. Housing, however, remains a bright spot as the economy picks up speed entering the second quarter. 


Industry Insights


Who are NAHB's Builder Members?

 

The latest member census reveals that the median dollar volume for builders in 2015 was the highest on record.

 

Market Share of the Nation's Top Builders

The total number of closings among each of the top 100 U.S. builders in 2015 ranged from 365 to 36,736. 


One-Person Residential Construction Firms Total 1.7 Million

Though large in numbers, these contractors typically pull in modest receipts.  

 

Lending Trends


Non-Bank Institutions Account for Nearly Half of All Home Loans

The share of mortgage originations from independent mortgage companies is the largest among all lender types. 


Home Mortgage and Multifamily Residential Debt Expand

Rising real estate values outpaced increasing mortgage debt, resulting in overall home equity growth.


Consumer Credit Outstanding Grows on Auto, Student Loans

Outstanding non-revolving credit now stands at $2.65 trillion.


Macroeconomic Indicators

 

Increasing Energy Prices Drive Producer Price Index Higher

May's upsurge was twice the size of April's. 


Last Month's Employment: All Systems No

April was a bad month, May was a shocker, and June is a non-starter.


Construction Employment Drops as Job Openings Persist

The count of total jobs in the home building sector has declined for two straight months.


Personal Consumption Expenditure Jumps

April's increase was the biggest since August 2009. 


Private Residential Construction Spending Stalls

Both multifamily and home improvements declined in April, while single-family spending was virtually unchanged. 


Consumer Perspectives


Consumer Confidence Slipped Again

But expectations improved for business conditions six months from now.


New House Price Data Show Why Costs are a Problem

Nearly one-third of consumers expect to pay less than $150,000 for a home, while just 6% of new homes fall in that range. 

 


As the National Association of Home Builders (NAHB) celebrates National Homeownership Month in June, builders continue to demand affordable housing for all Americans, calling for sensible reforms to burdensome regulations that increase the cost of housing.

As the National Association of Home Builders (NAHB) celebrates National Homeownership Month in June, builders continue to demand affordable housing for all Americans, calling for sensible reforms to burdensome regulations that increase the cost of housing.

 

“The aggressive over-regulation of the housing industry is putting the American Dream of safe and affordable housing at risk,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. 

In May, NAHB released a study, Government Regulation in the Price of a New Home, which showed that on average, government regulations account for 24.3% of the final price of a new single-family home. In fact, the regulatory costs for an average single-family home went from $65,224 in 2011 to $84,671 in 2016 – a 29.8% increase in five years.

 

“Regulators at all levels of government – local, state and federal – must understand that their actions have real consequences,” said NAHB Chief Executive Officer Jerry Howard. “The cost of regulation in the price of a new home is rising more than twice as fast as the average American’s ability to pay for it. That is simply not sustainable.”

 

NAHB has been fighting back against costly regulations that fail to meet their intended goals, including the Department of Labor’s new overtime rule that was implemented without considering its impact on small businesses, consumers, workers and the economy.

 

The 100% increase to the salary threshold for overtime eligibility will hit the home building industry particularly hard and harm housing affordability. It will reduce job-advancement opportunities and the hours of full-time construction supervisors, leading to construction delays, increased costs and less affordable housing options for consumers.

 

“Common sense reforms to the regulatory approval process would open the doors of homeownership to more Americans across the country,” Brady said.

 

During National Homeownership Month in June, and throughout the year, NAHB and its 700 state and local affiliates work hard to make affordable housing a reality and a priority to our nation’s leadership.

“Homeownership remains a core American value to consumers across the country,” Brady said. “In addition to building stronger communities, homeownership provides a solid foundation for family and personal achievement. It is critical that we keep this dream within reach, and not price out buyers with needless overregulation.”