According to several recent reports from the National Association of Home Builders (NAHB), residential construction is starting the year out right, showing significant signs of growth and room for expansion in 2018. Following are a few examples from NAHB on the recent gains in this sector. The full reports are available via the links below.
- Builder confidence in the market for newly-built single-family homes increased five points to a level of 74 in December on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) after a downwardly revised November reading. This was the highest report since July 1999. Builder confidence has improved in 2017 on hopes of an improved regulatory environment for firms in the residential construction sector. Read the full report on builder confidence.
- Total housing starts increased in November as well, with strong readings from the single-family sector. Total starts increased 3.3% to a 1.3 million seasonally adjusted annual rate, according to the joint data release from the Census Bureau and HUD. Read the full report on why housing starts match the rise in builder confidence.
- According to the Census Bureau’s Building Permits Survey (BPS), over the first 10 months of 2017, the total number of permits (including single-family and multi-family) issued nationwide on a not seasonally adjusted basis reached 1,070,750. This is 6.8% ahead of its level over the first ten months of 2016, 1,002,139. Read full report on which states saw permit growth.
- Contracts for new, single-family home sales expanded by 17.5% in November to a 733,000 seasonally adjusted annual rate, according to estimates from the joint release of HUD and the Census Bureau. The particularly strong growth rate was due to a large downward revision for the October estimate (624,000, originally 685,000). However, the November sales rate was the fastest pace since July 2007. The expansion is supported by ongoing job growth and improving owner-occupied household formations, as well as tight existing home inventory. Read the full report on the surge in new home sales.