November 30, 2017

Rising Starts and Sales Indicate More Gains Ahead

October was a good month for housing. Single-family and multifamily housing starts rose by almost 14%. Single-family starts (877,000) are at a post-recession high and have grown 8% on a year-to-date basis compared to last year. 

And rising home sales indicate more gains are in store for residential construction. Existing home sales expanded 2% in October, while inventory fell for the 29th consecutive month to only a 4.4 months' supply. Newly built single-family homes sales rose 6% last month, recording its strongest reading in a decade.

At this sales pace, there is only a 4.9 months' supply of new homes available. Moreover, a rising share of new home sales is coming from homes that have not yet begun construction, pointing to additional gains for construction in the near term.

–NAHB Chief Economist Robert Dietz

Prices and Sales

New Home Sales Reach Strongest Pace in a Decade

Shrinking inventory of existing homes gives more momentum to new home construction.

Existing Sales Up 2% in October

Share of first-time buyers increased to 32%.

Home Price Appreciation Continues 

All 20 of the U.S. metro areas had positive annual growth.

Housing Starts

Slight Gains for Custom Home Building

Volume is expanding, but overall market share is seeing declines. 

Construction of Multifamily Rentals on the Rise 

Starts ticked back up to an elevated level of 95% in the third quarter. 

Townhouse Construction Growth Continues

Starts in the third quarter were 18% higher than a year ago. 

Housing Starts Rise in October

Solid readings from the single-family sector. 

Industry Insights

AD&C Financing Conditions Ease at a Slower Pace

All major categories of lending continue to report easing standards. 

How Many Toilets, Showers are in Newer Homes? 

NAHB study examines bathroom fixture trends through several decades. 

Multifamily Developer Confidence Weakens 

Third-quarter index reading the lowest since 2011. 

Declining New Home Size Trend Continues

Median size of a new single-family home has decreased to 2,378 square feet.