Latest Posts:
Tag

housing

Browsing
In Research & Trends

Mortgage Applications Decline for Sixth Straight Month in August – Eye On Housing

No Comments


Mortgage application activity continued to decline in August as elevated US treasury yields pushed mortgage rates higher. The Mortgage Bankers Association’s (MBA) Market Composite Index, a measure of total mortgage application volume, declined 3.2% month-over-month in August on a seasonally adjusted basis, marking the sixth consecutive monthly decline. Compared to a year ago, total mortgage applications declined 9.1%.

The monthly decline occurred in both major components. Purchase applications decreased 3.1% from July, while refinance applications declined 3.5%. Relative to August 2025, purchase and refinance activities were also down 2.5% and 16.6%, respectively.

The decline in market activity continued to slow down as the average contract rate for a 30-year fixed-rate mortgage rose. Compared to last month, the mortgage rate increased 8 basis points (bps) to 6.78%. The rate was also 9 bps higher than a year ago.

By loan type, applications for adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) decreased 0.6% and 3.4% month-over-month, respectively. Compared with a year earlier, ARM application volume fell 18.2%, while FRM applications declined 8.2%. Despite the monthly decline in ARM applications, their share of total applications edged higher because ARM activity fell less than FRM activity. ARMs, including both purchase and refinance loans, accounted for 7.9% of total applications on a non-seasonally adjusted basis in August, up 0.2 percentage points from July but 0.9 percentage points below the share recorded a year earlier. The average contract interest rate for 5/1 ARMs was 5.90% in August.

Average loan sizes also declined across all categories in August. The overall loan size decreased 2.3% to $375,300. The average purchase loan size fell 0.8% to $441,000, while the average refinance loan size declined 4.5% to $283,000. The average ARM loan size edged down 1.5% to $923,800.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Who Are NAHB’s Builder Members? – Eye On Housing

No Comments


The National Association of Home Builders (NAHB) conducts an annual census to better understand the composition and characteristics of its members.  In 2025, 35% of NAHB’s membership was comprised of builder members—single-family and multifamily builders, residential and commercial remodelers, commercial builders, land developers, and manufacturers of modular/panelized/log homes.  The remaining 65% were associate members—those involved in support industries and professions, such as trade contractors, manufacturers, retailers/distributors, designers, and architects.

Among builder members, 62% are single-family home builders, 21% are residential remodelers, 5% each are commercial builders, land developers, and multifamily builders, and 1% each are commercial remodelers and manufacturers of modular/panelized/log homes.

Number of Housing Starts in 2025

The typical NAHB builder member is not a large company, but rather a small business. Builder members started a median of five housing units in 2025. That figure has fluctuated narrowly between five and six units since 2013. A plurality of 21% started two or three homes, 10% started one, 15% started four or five, 13% started six to ten, 13% started 11 to 25, 11% started 26 to 99, 8% started 100 to 499, and 3% started 500 homes or more.  About 7% did not start any homes at all in 2025.

Median Revenue of Builder Members in 2025

Most builders earned less than $5 million in total revenue in 2025: 14% reported a dollar volume of less than $500,000, 11% reported between $500,000 and $999,999, 38% (the plurality) between $1.0 and $4.9 million, 14% between $5.0 and $9.9 million, 7% between $10.0 million and $14.9 million, 10% between $15.0 million and $45.0 million, and 7% reported their dollar volume at more than $45.0 million. The median revenue remained unchanged from the previous year, at $3.7 million.  For comparison, the Small Business Administration’s size standards classify residential builders and remodelers as small if they have average annual receipts of $45.0 million or less ($34.0 million or less for land developers).

Median Number of Employees in 2025

The typical builder member had six employees on payroll in 2025, unchanged since 2023.  Due to their status as small businesses and extensive use of subcontractors, many builders carry relatively few employees on their payrolls. 

For more detail on the 2025 NAHB Builder Member Census, including a profile for each of the seven major categories of builders, please see the September 2026 Special Study.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Single-Family Home Construction Time Declines in 2025 – Eye On Housing

No Comments


Building a new single-family home took less time in 2025 compared to the previous three years. On average, it now takes 8.8 months from start to finish. That time includes 1.4 months for authorization to start construction and another 7.4 months to finish construction.

Data from the Census Bureau’s Survey of Construction shows that single-family construction timelines have shortened as pandemic-era supply chain challenges have eased. However, the time period is still around 1.6 months longer than the average completion time in 2015. The longer construction timeline may reflect several headwinds facing builders, including a more stringent regulatory environment and an ongoing skilled labor shortage.

Among all single-family houses completed in 2025, homes built for sale required the shortest amount of time, 7.4 months from obtaining building permits to completion. Meanwhile, homes built by owners (portion of custom home building) required the longest time, 14.3 months. Homes built by hired contractors took about 11.7 months (the larger portion of custom home building), and homes built-for-rent required about 12.4 months from authorization to completion.

The chart below illustrates that permit-to-completion time differs across home sizes. The smallest single-family homes, under 1,200 sq. ft., required 12.2 months to finish, relatively longer than every other size homes except those over 5,000 sq. ft. This prolonged period is primarily because half of these smaller homes are constructed specifically for rental purposes, which typically takes longer building time from authorization.

In contrast, homes ranging from 1,200 to 3,999 sq. ft. are built at the average building time, typically around 9 months. As the size increases beyond 4,000 sq. ft., there is a noticeable upward trend in completion times. Homes of 4,000-4,999 sq. ft. take about 10.7 months, while those between 5,000- 5,999 sq. ft. extend to around 12 months. Homes over 6,000 sq. ft. take the longest to build, requiring 16.3 months from permit to finish.

The average time from authorization to completion also varies regionally across divisions. The division with the longest duration was New England (13.5 months), followed by the Middle Atlantic (12.6 months), the Pacific division (10.3 months), the East South Central division (9.1 months), and the Mountain division (9.1 months) in 2025. These five divisions exceeded the nation’s average of 8.8 months. The shortest period, 7.6 months, is registered in the South Atlantic division. The average waiting period from permit to construction start varies from the shortest time of 1 month in the East North Central and the West North Central to the longest of 1.8 months in New England.

The SOC also collects additional information for houses built for sale, including a sale date when buyers sign sale contracts or make a deposit. Looking at single-family homes built for sale and completed in 2025, 12.3% were sold before construction started, 29.3% sold while under construction, 18.5% sold during the month of completion, and 31.5% sold after completion. The share of completed houses remaining unsold was 8.3% at the point of survey. Compared with 2024, a larger share of new single-family homes remained on the market until after construction was completed. The share sold after completion rose from 27.0% to 31.5%, while the share sold while under construction fell from 33.0% to 29.3%, and the share sold before construction began declined from 15.2% to 12.3%. These shifts suggest that, despite shorter construction timelines, builders faced a weaker sales environment in 2025.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Shorter Apartment Construction Time in 2025 – Eye On Housing

No Comments


The average time needed to complete construction of a multifamily building after obtaining authorization edged down in 2025, according to the 2025 Survey of Construction (SOC) from the Census Bureau. On average, it took 18.9 months from permit to completion, about 0.7 months shorter than in 2024. While construction timelines remain lengthy, this modest decline occurred despite the industry continuing to face a shortage of skilled labor.

Although multifamily construction time shortened in 2025, it remained lengthy compared to historical trends. The average time from permit to completion was still 3.5 months longer than the 15.4 months recorded in 2009 and almost 7 months longer than the period low of 12 months in 2013. Most of this long-term increase occurred during the construction phase. The average time from start to completion rose from 13.4 months in 2009 to 16.5 months in 2025, partly due to the growing share of larger multifamily buildings. The share of multifamily buildings with 50 units or more increased from 43% in 2009 to 57% in 2025, and larger buildings generally take longer to complete.

The average time to build multifamily homes varies with the number of units in the building. Despite the modest improvement for most building sizes in 2025, the construction times remained much longer than they were a decade earlier. In 2025, buildings with 20 or more units took the longest to build after obtaining authorization at 21.7 months, compared with 16.2 months in 2015 and 22.1 months in 2024. By contrast, 2-to-4-unit buildings were finished the fastest, averaging 14.9 months, up from 12 months in 2015 but slightly below 15.3 months in 2024. Mid-sized projects fell in between, with 10-to-19-unit buildings averaging 18.5 months in 2025, compared with 14 months in 2015 and 19.2 months in 2024, while buildings with 5-to-9-units averaged 21.5 months, up sharply from 13.2 months in 2015 and 19.1 months in 2024.

The 2025 SOC data also show a significant regional variation in the average construction duration of multifamily buildings. The Northeast had the longest time from authorization to completion at 21.9 months, followed by the West at 20.6 months, and then the South with 17.5 months. The shortest permit-to-completion period happened in the Midwest with 16.6 months.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

U.S. Economy Adds 162,000 Jobs in August – Eye On Housing

No Comments


The U.S. labor market rebounded in August, with nonfarm payrolls increasing by 162,000 and upward revisions adding 55,000 jobs to June and July. The unemployment rate held steady at 4.1%, as both employment and the labor force participation rate rose over the month. August’s gain leaves just five outright monthly declines in payrolls over the past year and a half, with the most recent occurring in February. While the strength reported for the labor market is positive, today’s data increases the probability of a Federal Reserve rate hike in the near future.

Wage growth continued to cool, with average hourly earnings rising 3.1% year over year in August, down from 3.2% in July and marking the slowest pace of 2026. Average hourly earnings reached $37.75. Meanwhile, a recent sharp increase in energy and gasoline prices, driven by conflicts in the Middle East, has pushed inflation higher even as wage growth has slowed.

National Employment

According to the Employment Situation Summary reported by the Bureau of Labor Statistics (BLS), total nonfarm payroll employment increased by 162,000 in August, following an upwardly revised gain of 21,000 in July. Revisions to prior months were broadly positive, reversing two straight months of downward revisions. The change for June was revised up by 11,000, from the +20,000 reported last month to +31,000, while the change for July was revised up by 44,000, from a preliminary decline of 23,000 to a gain of 21,000. Combined, these revisions added 55,000 jobs to previously reported totals, compared with the 103,000 downward revisions reported in the prior month.

Job growth in 2026 has picked back up. Through August, monthly payroll gains have averaged 80,000 on the current data vintage, up from the 61,000 pace reported through July, reflecting both August’s strong print and the upward revisions to June and July. This compares with an average of just 10,000 per month in 2025 and 122,000 per month in 2024. Over the past 12 months, total nonfarm employment has grown by 603,000, a modest acceleration from the pace of expansion reported over the summer.

The unemployment rate held at 4.1% in August, unchanged from July and 0.2 percentage points below its year-ago level of 4.3%. Over the month, the number of employed persons rose by 569,000, while the number of unemployed persons increased by 115,000. Combined, the civilian labor force expanded by 683,000 in August.

Meanwhile, the labor force participation rate—the proportion of the population either looking for a job or already holding a job—rose 0.2 percentage points to 61.6% in August. It remains well below its pre-pandemic level of 63.3% recorded at the start of 2020. Among prime working-age individuals (aged 25 to 54), the participation rate held at 83.4%, matching July’s level.

Employment gains in August were led by food services and drinking places, which added 59,000 jobs, followed by local government education, with an increase of 42,000. Health care employment continued to trend upward, adding 13,000 jobs, while manufacturing employment also expanded by 16,000. These gains were partially offset by a 23,000 decline in information.

Construction Employment

Employment in the overall construction sector rose by 22,000 jobs in August, following a gain of 18,000 in July. Within the industry, residential construction employment increased by 10,700, its strongest monthly gain in more than a year, while non-residential construction added approximately 10,400 jobs. The gain for residential construction in August is out of sync with other building data and may be subject to a downward revision in future reports.

Residential construction employment stood at 3.3 million in August, including 923,700 workers employed by builders and remodelers, up from 916,400 in July, and 2.3 million residential specialty trade contractors.

The six-month moving average of job gains for residential construction employment remained negative in August but improved to an average monthly loss of approximately 1,233 jobs, compared with a loss of roughly 5,617 jobs in July. Over the last 12 months, residential construction has shed a net of 19,800 jobs, marking the eighteenth consecutive month of year-over-year decline. Despite these losses, residential construction employment remains 1,290,300 positions above its post-Great Recession low. This cushion widened from 1,279,600 in July, reflecting August’s employment gain.

Meanwhile, the unemployment rate for construction workers fell to 4.1% in August on a seasonally adjusted basis, down from 4.6% in July and its lowest reading since April. After several months of volatility, the construction unemployment rate has returned to roughly its year-ago level, suggesting that labor market conditions in construction have stabilized.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

What the National Median Misses – Eye On Housing

No Comments


In the second quarter of 2026, the national median price for a new single-family home was $410,700, $25,000 lower than the national median price of an existing home, which stood at $435,700. This marks the largest difference between the national median trends for existing and new home prices, according to U.S. Census Bureau and National Association of Realtors data (not seasonally adjusted – NSA). However, the national trend reversal is best understood as a regional and compositional phenomenon. 

Historically, the national median prices of new homes trended above existing homes. However, beginning in the second quarter of 2024, this relationship reversed, with the national median existing home prices exceeding new home prices in six of the past nine quarters.  

There are several factors for this new trend. Tight inventory continues to push up prices for existing homes, as many homeowners who secured low mortgage rates during the pandemic are hesitant to sell due to continued high interest rates.  

Meanwhile, new home pricing is more volatile – prices change due to the types and locations of homes being built. Despite various challenges facing the industry, home builders are adapting to affordability challenges by building on smaller lots, constructing smaller homes, and offering incentives. According to NAHB’s Home Building Geography Index, new homes are also shifting away from dense population centers (more expensive) and are moving toward smaller metro/micro areas (less expensive). Geographically, there has been a shift in home building toward the South, associated with less expensive homes because of policy and regulatory effects. This has occurred in an environment in which construction costs continue to rise, which is the fundamental driver of new and existing home prices. 

Although the national trend shows existing homes at higher median prices than new homes, a similar trend occurs in only two geographic regions: the South and the West. Meanwhile, the Northeast and Midwest show the opposite trend. New and existing home prices can vary across regions due to many underlying factors including regulations, land and construction costs, home and lot sizes, location (urban vs. rural areas), housing stock, and local market conditions. 

In the second quarter, the least expensive region for new homes was the South, with a median price of $362,500. The Midwest followed closely behind at $397,200. For existing homes, the Midwest was the least expensive region at $342,000, followed by the South at $380,600. 

New homes were most expensive in the Northeast with a median price of $704,700, while the West sold at $546,700. For existing homes, the West led as the most expensive region at $636,900, followed by the Northeast at $546,900.  

The new home price premium was most pronounced in the Northeast, where new homes sold for $157,800 more than existing homes. Additionally, in the Midwest, new homes sold for $55,200 more than existing homes. The West and South set the national trend, with existing homes priced $90,200 more than new homes in the West and $18,100 more in the South. 

Both new and existing homes saw dramatic increases in price post-pandemic due to higher construction costs and limited supply. While overall home prices remain unaffordable compared to historical norms, new home prices have moderated due to tactical builder business decisions, whereas existing home prices continue to increase because of lean supply in some markets and, perhaps, a lack of price discovery for existing homeowners. 

The national median price for a new single-family home sold in the second quarter of 2026 decreased by 1.3% from the previous year. New home price annual growth has been trending downwards since the second quarter of 2023.  

Although existing home prices have continued to experience year-over-year increases for the past twelve quarters, annual growth has slowed from a high of 4.9% two years ago to 1.7% in the second quarter of 2026. 



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Mortgage Rates Climb as Global Forces Push Yields Higher – Eye On Housing

No Comments


Mortgage rates increased in August as Treasury yields remained elevated amid persistent inflation concerns. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.67% in August, up 13 basis points (bps) over July. Since the conflict in the Middle East began, the 30-year mortgage rate has jumped by more than 60 bps. The average 15-year rate averaged 5.98% in July, up 7 bps from July and 55 bps from the end of February. Mortgage rates are now roughly on par with their levels a year ago, with the 30-year rate 6 bps higher and the 15-year rate 24 bps higher.

The 10-year Treasury yield, a key benchmark for long-term borrowing, rose 10 bps to an average of 4.68% in August, Yields rose in the later part of the month amid a broader selloff in global government bonds. Long-term government bond yields across several major economics climbed to multi-year highs in August, with the 30-year US Treasury yield reaching its highest level since 2007 and long-term yields in Japan and parts of Europe reaching levels not seen in decades. The global selloff reflected growing investor concerns about persistent inflation, rising government debt and heavy sovereign borrowing. Higher oil prices from the ongoing Iran conflict also added to inflation concerns.

Domestically, Treasury yields faced additional upward pressure following the Federal Reserve’s (Fed) annual Jackson Hole symposium. Federal Reserve Chair Kevin Warsh emphasized that inflation remained above the Fed’s 2% target, and that restoring price stability remained the Fed’s primary focus. His remarks reinforced market expectations that monetary policy could tighten later in the year.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Share of New Homes with Patios Dips to a Six-Year Low – Eye On Housing

No Comments


The share of new homes with patios dipped below 61% for the first time since 2019, according to NAHB tabulation of data from the Survey of Construction (conducted by the U.S. Census Bureau with partial funding from the Department of Housing and Urban Development). Of the roughly 940,00 single-family homes started during 2025, 60.5% came with patios. This is down from 61.8% in 2024 and marks the lowest percentage since the 59.6% recorded in 2019.

Historically, the share of homes with patios was increasing every year from the end of the Great Recession through 2023 (except in 2015, when it was unchanged). Over the past two years, however, the trend reversed itself, and the share of new homes with patios has started to decline.

Historically, the share of homes with patios was increasing every year from the end of the Great Recession through 2023 (except in 2015, when it was unchanged). Over the past two years, however, the trend reversed itself, and the share of new homes with patios has started to decline. During that time, the geographic pattern of patios on new homes has remained stable for the most part, but in 2025 the share of new homes with patios increased substantially—from 14% in 2024 to 26%—in New England. New England has traditionally been the Census division where patios on new homes are least common, but in 2025 New England edged ahead of the Middle Atlantic, where the percentage held steady at 23%.  At the high end, the top three divisions for new-home patios remained the same in 2025 as they had been the previous year: the West South Central (77%), Mountain Division (74%), and South Atlantic (66%).

Additional detail on the characteristics of new-home patios is available from the Annual Builder Practices Survey (BPS) conducted by Home Innovation Research Labs.

For the U.S. as a whole, the 2026 BPS report (based on homes built in 2025 like the SOC-based statistics cited above) shows that the average size of a new-home patio is about 320 square feet, but with considerable geographic variation. The average is well over 400 square feet in the adjacent East North Central and East South Central divisions. New home patios are considerably smaller on the other side of the Mississippi River, with an average of under 200 square feet in the West South Central, and only a little over 200 square feet in the West North Central division.

In most parts of the country, builders use more poured concrete than any other material in new home patios. Across all nine Census divisions, poured concrete accounts for over 60% of new home patios on a square-foot basis. The only real counterexample continues to be the New England division, where concrete pavers and natural stone each account for more patio square footage than poured concrete, and brick pavers account for almost as much.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Private Residential Construction Spending Continues to Weaken – Eye On Housing

No Comments


Private residential construction spending fell further in July, marking its fourth consecutive monthly decline. According to the latest construction spending data from the U.S. Census Bureau, private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $859.0 billion in July, down 1.3% from the revised June estimate and down 7.3% from a year earlier.

The July decrease was driven entirely by the single-family construction, the only residential category to post a monthly decrease. Single-family construction spending fell 3.2%, consistent with the continued weakness in builder sentiment reflected in the NAHB/Wells Fargo Housing Market Index (HMI). On a yearly basis, single-family spending was down 6.5%.

Multifamily construction spending edged up by 0.2% from June but remained 0.9% below the previous year. Spending on improvement (remodeling) also saw a modest increase of 0.3% over the month but declined 10.2% over the year. The remodeling estimates, which had significant revisions in the June report, underwent further revisions in July. May’s monthly change was revised from a 0.4% decline to a 1.1% decline, while June’s initially reported a 0.1% increase was revised to a 0.8% decrease.

The NAHB construction spending index is shown in the graph below. The index illustrates how spending on single-family construction has slowed since early 2024, reflecting the impacts of elevated interest rates and ongoing uncertainty over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in June 2023, with the index largely plateauing since late 2024.  In contrast, improvement spending has been on an upward trend since 2023, supported in part by the aging housing stock and sustained demand for renovation. However, the latest revision indicates that a slowdown could be happening in 2026.

Private nonresidential construction moved in the opposite direction, recording its fourth consecutive monthly increase. July’s spending rose 0.4% to a SAAR of $755.2 billion, although it remained 3.3% below the previous year. Data center construction, a subcategory within office construction, remained strong with spending increasing 6.2% month-over-month and 57.2% year-over-year. The share of data centers as a percentage of spending on office construction has now surpassed 60% in July 2026.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
In Research & Trends

Number of Open Construction Sector Positions Rising – Eye On Housing

No Comments


The number of open positions in the construction sector increased in July per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down from three years ago due to declines in construction activity, particularly in housing. Nonetheless, strength in construction for subsectors like data center construction (up 46% year-over-year) is creating demand for construction workers. Further, increasing immigration enforcement actions is having an effect on worker availability, which is also contributing to the number of open positions.

The number of open jobs for the overall economy increased slightly in July, rising to 7.27 million. The July reading was higher than a year ago (7.09 million). The recent increase in job openings for the overall economy indicates that the labor market remained resilient during the summer, despite concerns over headline risk and AI.

The number of open construction sector jobs increased for the month, rising slightly from 298,000 in June to 326,000 in July. This total is also higher than the total from a year ago (305,000). The chart below notes a declining trend followed by a new range for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened.

While home building employment has declined over the last year, other subsectors of the construction industry have expanded (e.g. data center construction). The July data suggest a breakout from the range for the last two years is possible given the crosswinds affecting the construction labor market.

The construction job openings rate increased to 3.8% in July, up from the 3.6% rate estimated a year ago.

Construction hiring picked up in July, with the hires rate rising from 3.8% to 4.4%.

The layoff rate in construction was flat at 1.9% in July. The quits rate increased to 2.3% in July.



This article was originally published by a eyeonhousing.org . Read the Original article here. .

Read More
By
Load More
Pin It