Tag: Homebuilding

U.S. housing starts drop to lowest level since June 2020

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The numbers: Construction of new U.S. homes fell 11.3% in August — falling short of Wall Street expectations — as builders scaled back new projects to focus on completions.

The pace of construction reversed course and fell as mortgage rates stayed over 7%, dampening home-buying demand. The last time construction of new homes was at this level was in June 2020.

So-called housing starts fell to a 1.28 million annual pace from 1.45 million in August, the government said Tuesday. That’s how many houses would be built over an entire year if construction took place at the same rate every month as it did in August.

Economists on Wall Street were expecting a drop in starts to 1.43 million. All numbers are seasonally adjusted.

Housing starts peaked at 1.8 million in April 2022.

The number of homes started in July was revised downwards, to an increase of 2% to 1.45 million, from an initial reading of a 3.9% gain.

More from MarketWatch: Meet the brave Americans buying and selling their homes, despite stubbornly high interest rates

New homes have dominated the housing market, but persistently high rates are beginning to spook home builders. In anticipation of waning demand, builders said they’ve started to ramp up price cuts to boost buyer demand in September, according to a survey by the National Association of Home Builders.

Building permits, a sign of future construction, rose 6.9% to a 1.54 million rate. That’s the highest level since October 2022.

Key details: The construction pace of single-family homes fell by 4.3% in August, and apartment-building construction fell by 26.3%.

But home builders ramped up single-family home construction in the South, where starts rose by 8.1% in August.

Housing starts fell the most in the West, by 28.9%.

Permits for single-family homes rose 2% in August, while permits for buildings with at least five units or more surged by 14.8%.

Around 1.69 million homes were under construction as of August.

Big picture: Builders are increasingly concerned about how 7% rates will impact demand, and they’re pulling back on starting new developments as a result.

Builder confidence in September fell to the lowest level in five months, according to the NAHB. Home builders are increasingly offering incentives, including cutting prices. The share of builders cutting prices to boost sales rose to the highest level in nine months, the NAHB noted, going up to 32% in September from 25% the previous month.

Nonetheless, given the long-term need for housing and a decade of underbuilding, builders may not see a sustained drop in demand.

What are they saying? Despite starts falling sharply in August, the uptick in building permits “suggests housing starts could pick up modestly again and today’s data could reflect some volatility,” CIBC Economics said in a note. “Nonetheless, the cooling in building activity is a good sign for the Fed which is expecting to limit housing market activity in an effort to contain inflation.”

Rates have peaked, but “will remain elevated for the rest of the year,” Capital Economics wrote in a note. And this means that with “a slowing economy, we expect this will lead single-family starts to flatten-off at around 900,000 annualised until mid-2024, after which an economic recovery will help spur buyer demand and supporting renewed homebuilder confidence,” they added.

Market reaction: U.S. stocks
DJIA

SPX
were set to open higher early Tuesday. The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
rose above 4.3%.

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September 19, 2023
HomeAid Collects & Distributes Over Six Million Critical Items in 2023 Essentials Drive Campaigns

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HomeAid Affiliates Across the Country Distributed 3.6 Million Diapers and Over 2.4 Million Baby Wipes in 2023 to Families in Need

IRVINE, Calif., September 12, 2023 (Newswire.com)
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HomeAid affiliates, in collaboration with several HomeAid building and nonprofit partners, collected over six million essential items to help those experiencing or at risk of homelessness, during the 2023 HomeAid Essentials Drives that took place from March to August. These necessary items will provide much-needed resources to children, families, and other individuals across the nation.

This year’s HomeAid Essentials drives spread across the country with 11 participating HomeAid affiliates. Most of the drives collected critical items for children and families. HomeAid Phoenix collected socks and underwear, a crucial need for individuals who are experiencing or at risk of homelessness.

Due to the recent rise in inflation in the United States, the overall cost of diapers has risen an unprecedented 22% since 2018 while U.S. inflation rates peaked at 9.1% in June 2022. That means prices are rising at more than double the rate of inflation, according to NielsenIQ, a data firm that tracks consumer prices.

To help combat this growing crisis that many families face, 10 HomeAid affiliates collected and distributed over 3.6 million diapers, over 2.4 million wipes, and nearly 69,000 other critical baby items in eight different states.

Government assistance programs generally cover welfare, food stamps, and Medicaid for low-income households in need, but diapers and wipes are typically not a commodity covered. HomeAid affiliates across the country help address and serve this need by contributing these necessary items to our nonprofit partners who, in turn, give them directly to those families and individuals in need.

“Incredible strides have been made through HomeAid’s annual Essentials Drives, thanks to the remarkable generosity and compassion of our community. This year’s drive has not only provided essential diapers and other essential items to countless families in need but has also served as a powerful reminder of the positive change we can effect when we unite for a common cause. The impact of these efforts extends far beyond the physical donations; they embody the spirit of caring and support that defines HomeAid’s mission. Together, we are building not just homes, but also hope and brighter futures for those facing or at risk of homelessness,” said Scott Larson, CEO, HomeAid America.

The following are the totals of the 2023 spring/summer essentials campaigns from 11 HomeAid affiliates:

HomeAid Atlanta — 198,485

HomeAid Austin — 217,057

HomeAid Colorado — 2,472,614

HomeAid Inland Empire — 71,222

HomeAid National Capital Region — 283,531

HomeAid Northern California — 34,604

HomeAid Orange County — 1,519,520

HomeAid Orlando — 360,000

HomeAid Phoenix — 8,400

HomeAid Southern Nevada — 122,155

HomeAid Utah — 807,869

Media Contact: Monique Waddington, Director of Communications and Donor Relations (mwaddington@homeaid.org)

AboutHomeAid

Founded in 1989, HomeAid develops, builds, and preserves a variety of housing, including emergency, interim, transitional, permanent supportive, and affordable housing through its 19 chapters in 13 states. In addition, this includes resource/navigation centers that provide support services to those experiencing or at risk of homelessness. HomeAid partners with hundreds of nonprofit organizations nationwide that provide the housing and support services that help residents move toward self-sufficiency, such as education and job-skills training, financial counseling, physical and emotional support, and much more.

HomeAid has completed 1,183 housing and outreach projects with a value of more than $340 million. HomeAid has added over 13,445 beds that have served over 701,668 previously homeless individuals. For more information, visit www.homeaid.org.

Source: HomeAid America

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September 12, 2023
Construction spending inches up, showing signs of a recovery in housing

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The construction industry posted a slight gain in May as companies and the government increased spending on projects across the U.S.

Spending on construction projects rose 0.9% in May to $1.93 trillion, the Commerce Department reported Monday.

Wall Street was expecting construction spending to rise 0.5% in April.

Construction spending reveals how much the government and private companies spend on projects, from housing to highways. The more the U.S. spends on construction, the higher the level of economic activity.

The government revised spending on construction in April to 0.4% from an initial read of a 1.2% increase.

Over the past year, construction spending was up 2.4%.

In terms of residential real estate, private residential construction fell 11.6% in May as compared to the previous year. It was up 2.2% as compared to April.

Single-family construction rose on a month-over-month basis in May by 1.7%, but fell sharply by 25% from last year.

Multifamily construction fell by 0.1% in May, but increased by 20.4% from last year.

Spending on public residential construction rose by 0.1% from last month, and 12.3% from last year. The U.S. increased spending on public residential construction by 1.1% from last month, and 8.3% over the last year.

The increase in spending May overall was “strong,” Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets, wrote in a note.

“In particular, new residential activity jumped by 2.2%, reversing the cumulative declines recorded over the three prior months,” he added. “This lines up with the big increase in housing starts in May and adds to the growing body of evidence that the housing sector is bottoming out.”

Stocks
DJIA,
+0.11%

SPX,
+0.04%
were down in early trading on Monday. The 10-year Treasury note
TMUBMUSD10Y,
3.844%
was around 3.8%.

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July 3, 2023
Home builders turn bullish for the first time in nearly a year amid strong housing demand
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The numbers: For the first time in nearly a year, home builders are upbeat about the housing market outlook.

The shortage of previously-owned sales is helping to buoy builders’ confidence.
With mortgage rates above 6%, many homeowners find little incentive to sell—nearly 92% have an outstanding mortgage with a rate below 6%, according to a recent survey conducted by Redfin
RDFN,
-0.37%,
a brokerage and real estate listings company. And 23.5% of homeowners have a mortgage rate of less than 3%. Consequently, the number of new home listings has dropped by 22%, as compared with the same period a year ago, according to a Realtor.com housing trends report.

In turn, home builders are feeling good about their business. The National Association of Home Builders’ (NAHB) monthly confidence index rose 5 points to 55 in June, the trade group said Monday.

This is the sixth month in a row that sentiment has improved among builders. It is also the first time in 11 months that builder confidence has moved into positive territory of above 50.

The June reading of 55 was the strongest since July 2022. A year ago, the index stood at 67.

Key details: Builders were starting to pull back on sales incentives. The share of builders cutting prices to boost sales has dropped to 25% in June, from a peak of 36% in November 2022.

The typical builder was cutting prices by 7% in June, the NAHB said.

The three gauges that underpin the overall builder-confidence index were up.

A reading on current sales conditions rose by 5 points.

A measure on future sales gained 6 points.

A gauge of traffic of prospective buyers rose by 4 points.

Big picture: Due to pandemic-era monetary policies that depressed mortgage rates, the home buyers, real-estate agents, mortgage brokers and the rest of the industry are stuck trying to find solutions to a major supply crunch of homes.

Builders seem to be one of the few participants who have benefited from the supply crunch, given the nature of their business of new construction. The homebuilder ETF,
XHB,
-0.38%,
is up 25% year-to-date.

What the NAHB said: “A bottom is forming for single-family home building as builder sentiment continues to gradually rise from the beginning of the year,” Robert Dietz, chief economist at the NAHB, wrote.

And with the “Federal Reserve nearing the end of its tightening cycle,” the statement read, it’s “good news for future market conditions in terms of mortgage rates and the cost of financing for builder and developer loans.”

Markets were closed on Monday in observance of the Juneteenth holiday.

Realtor.com is operated by News Corp subsidiary Move Inc., and MarketWatch is a unit of Dow Jones, also a subsidiary of News Corp.
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June 19, 2023
HomeAid Launches Month-Long Homelessness Awareness Campaign
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Press Release
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Nov 1, 2022
IRVINE, Calif., November 1, 2022 (Newswire.com)
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HomeAid launches a month-long national campaign to raise awareness about homelessness. HomeAid believes housing is a human right. This awareness campaign encourages people to Learn, Act, and Share about the issues surrounding homelessness and will focus on those individuals and populations who are experiencing or at risk of homelessness.

According to the National Alliance to End Homelessness, every day in the United States, nearly 600,000 people live on our streets or in shelters, and thousands more families across the country live double and triple up with other families because they can’t afford a home. The causes of homelessness are many, including job loss, lack of affordable housing, medical crisis, domestic abuse, and mental health disorders.

The solution to homelessness is straightforward: housing. By connecting people experiencing homelessness to housing and services, they have a safe and stable location from which they can address areas that may have contributed to their homelessness, such as unemployment, health problems, and addiction.

“As the Thanksgiving holiday approaches, most people take time to consider what they’re thankful for and donate some of their time, attention, and resources to others. In the spirit of thankfulness and giving, each year HomeAid initiates this 30-day campaign,” said Scott Larson, Chief Executive Officer of HomeAid. “By becoming a part of this daily campaign, you are not only raising awareness but you are strengthening the national movement to building a future without homelessness in every community across this country.”

HomeAid and its 19 affiliates will be participating in this awareness campaign throughout November. Various events and activities are planned across the country in honor of Homelessness Awareness Month. They include:
- 10/3 – Thanksgiving Meal Drive 10/3 through 11/4 – HA Orange County
- 10/3 – Share the Warmth Drive 10/3 through 10/28 – HA Colorado
- 10/19 – Foundation Builders Breakfast – HA Portland
- 11/4 – HALO Luncheon – HA Houston
- 11/5 – Ending Homelessness Gala – HA Orlando
- 11/7 – Share the Warmth Drive 11/7 through 11/30 – HA Puget Sound
- 11/10 – Top Golf Event – HA Los Angeles
- 11/12 – HA National Capital Region Gala & Auction – HA National Capital Region
- 11/13 – 5K Walk and 20th Anniversary Celebration – HA San Diego
- 11/15 – Toy Drive – HA Northern California
- 11/18 – Fundraising Luncheon – HA Austin
To learn more about HomeAid’s mission, Homelessness Awareness Month, or how to get involved, please visit www.homeaid.org.

About HomeAid

Founded in 1989, HomeAid develops, builds, and preserves a variety of housing, including emergency, interim, transitional, permanent supportive, and affordable housing through its 19 affiliates in 13 states. HomeAid partners with hundreds of nonprofit organizations nationwide that provide housing and support services.

HomeAid has completed 1,043 housing and outreach projects with a value of more than $315 million. HomeAid has added over 12,600 beds that have served over 520,000 previously homeless individuals. For more information, visit www.homeaid.org.

Source: HomeAid
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November 1, 2022