State & National Updates
Job Growth Helps Propel Housing Demand
Despite growing supply-side concerns, housing demand continues to be sustained by healthy job creation and optimistic consumers. The Bureau of Labor Statistics reported that 220,000 jobs were created in June, with the unemployment rate increasing slightly to 4.4%. Moreover, home builders and remodelers added almost 116,000 jobs over the last 12 months.
Ongoing job creation has also helped support consumer optimism. The Consumer Confidence Index was up slightly in June, with one submeasure increasing to nearly 33% of respondents indicating jobs are plentiful. Incomes are also rising, with disposable personal income up 2.2% over the last year.
Economic challenges remain anchored on the supply side of the market, with a new softwood anti-dumping duty — in addition to existing countervailing duties — adding to builder costs. Moreover, the share of single-family home builders reporting shortages of framing lumber has increased to 21%.
For a midyear housing and economic market check, watch our construction forecast webinar, featuring NAHB's forecast and commentary from Moody's Mark Zandi and NAR's Danielle Hale.
NAHB Chief Economist Robert Dietz
Ready-mix concrete and trusses are also increasingly in short supply.
The labor market for construction workers remains tight as home building expands.
Lending and Spending
Housing's share of GDP holds strong.
The drop in May was the largest in three years.
Rates have slipped 18 basis points during the past three months.
Over the last year, home builders and remodelers have added 115,600 jobs.
Disposable income in May had the largest monthly increase in two years.
NAHB analysis compares expenditures of new home buyers to non-moving home owners.