Latest Posts:
Tag

March

Browsing
In Research & Trends

Private Residential Construction Spending Increases in March – Eye On Housing

No Comments


Private residential construction spending was up 1.7% in March 2026, following two straight months of declines. The increase was broad-based, with gains in single-family, multifamily construction, and home improvement spending. Moreover, total private residential construction spending was 3.6% higher than a year ago.

According to the latest construction spending data from the U.S. Census, single-family construction spending increased 2.7% in March, consistent with the steady builder confidence reflected in the NAHB/Wells Fargo Housing Market Index (HMI). Despite the monthly gain, single-family construction spending was down 4.2% over a year ago. Meanwhile, multifamily construction spending edged up 0.3% in March. This marks the second monthly increase after two consecutive months of modest declines. Compared to a year earlier, multifamily spending was 0.5% higher. Improvement spending (remodeling) also increased in March, rising 0.9% for the month. Remodeling remained a bright spot on a year-over-year basis, with spending up 14.3% from March 2025.

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 July 2023, with the index largely plateauing since late 2024. In contrast, improvement spending has been on an upward trend since the beginning of 2025, supported in part by the aging housing stock and sustained demand for renovation.

Spending on private nonresidential construction was down 2.1% over a year ago. The annual private nonresidential spending decrease was driven by a $39 billion drop in manufacturing construction spending.



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

Read More
By
In Research & Trends

March 2026 – Eye On Housing

No Comments


State labor market conditions showed modest improvement in March, with job gains concentrated in several large states and the construction sector continuing to expand. However, employment declines across a number of states and mixed unemployment rate trends point to uneven momentum across regional economies.

In March, nonfarm payroll employment increased in 34 states and the District of Columbia compared to February, while 15 states recorded declines. Vermont reported no change. According to the Bureau of Labor Statistics, total U.S. nonfarm payroll employment rose by 178,000 in March, following a loss of 133,000 jobs in February.

On a month-over-month basis, employment gains were led by Texas (+46,800), followed by California (+28,700), and Florida (+28,100). In contrast, a total of 21,500 jobs were lost across 15 states, with Oregon posting the largest decline (-4,800). In percentage terms, Tennessee recorded the strongest increase (+0.4 percent), while Oregon experienced the largest decrease (-0.2 percent) between February and March.

On a year-over-year basis ending in March, total nonfarm employment increased by 260,000 jobs nationwide, representing a 0.2 percent gain relative to March 2025. Job gains ranged from 100 in Wyoming to 144,700 in California. Collectively, 27 states and the District of Columbia lost 299,900 jobs over the past 12 months, with Maryland experiencing the largest decline (-49,900).

In percentage terms, job growth ranged from 0.1 percent in Delaware, Mississippi, New Jersey, and Georgia to 1.8 percent in Nevada. Wyoming, Maine, and Connecticut reported no change during the past 12 months. Among states with losses, declines ranged from 0.1 percent in Illinois, Montana, New York, and Kentucky to 1.8 percent in Maryland; however, the District of Columbia recorded a substantially larger decline of 5.3 percent.

Construction Employment

Construction employment —which includes both residential and non-residential construction, showed job gains in March. Thirty-one states and the District of Columbia added construction jobs compared to February, while 14 states experienced declines; five states reported no change. Ohio posted the largest monthly gain, adding 5,300 jobs, while Nevada recorded the largest loss (-2,600). Overall, the construction sector added a net 26,000 jobs nationwide in March. In percentage terms, Delaware recorded the strongest monthly increase (+4.2 percent), while Nevada experienced the steepest decline (-2.3 percent).

Year-over-year, construction employment increased by 57,000 jobs nationwide, a 0.7 percent gain compared to March 2025. Texas led all states with an increase of 21,600 construction jobs, while California recorded the largest loss (-9,400). In percentage terms, Missouri posted the strongest annual growth in construction employment (+5.2 percent), while Alaska experienced the largest decline (-6.5 percent).

State Unemployment Rate

The state unemployment rate is a key economic indicator that reflects the health of local labor markets, measuring the percentage of the workforce actively seeking work but unable to find it. High unemployment signals a weakening state economy, while low unemployment suggests a tight labor market that may contribute to rising wage pressures.

South Dakota had the lowest unemployment rates at 2.3 percent, while the District of Columbia had the highest rate at 6.3 percent. This elevated rate reflects significant federal workforce reductions and layoffs, exceeding 300,000 positions, which disproportionately affected the District in 2025. Hawaii, North Dakota, Vermont, and Alabama reported unemployment rates below 3.0 percent. Michigan, Illinois, Washington, Oregon, Nevada, California, and Delaware all recorded unemployment rates at or above 5.0 percent.



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

Read More
By
In Research & Trends

Slight Rise for Open Construction Jobs in March – Eye On Housing

No Comments


The number of open positions in the construction sector edged higher in March, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS). The current level of open jobs is down measurably from three years ago due to declines in construction activity, particularly in housing. However, recent gains for nonresidential construction have not fully offset soft conditions for housing with respect to the demand for construction labor.

The number of open jobs for the overall economy declined, falling from 6.92 million in February to 6.87 million in March. The March reading was down from a year ago (6.95 million) due to a cooling labor market.

Previous NAHB analysis indicated that this number had to fall below eight million on a sustained basis for the Federal Reserve to move forward on interest rate reductions. With estimates remaining below eight million for national job openings, the Fed, in theory, should be able to cut further. However, this is situation is complicated by rising energy costs due to the Iran war.

The number of open construction sector jobs increased for the month, rising slightly from 201,000 in February to 224,000 in March. This total was down compared to a year ago (278,000). The chart below notes the declining trend that has been in place for unfilled construction jobs since the Fed raised the federal funds rate and home building weakened. While home building employment was declining during the second half of 2025, other subsectors of the construction industry have expanded (e.g. data centers). This has produced volatility within a reduced range in the job openings series since 2024.

The construction job openings rate increased to 2.6% in March, down from the 3.3% rate estimated a year ago.

The layoff rate in construction declined slightly to 1.7% in March. The quits rate increased to 1.7% for the month.



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

Read More
By
In Research & Trends

Existing Home Sales Fell in March – Eye On Housing

No Comments


Existing home sales fell to a nine-month low in March as tight inventory, rising mortgage rates and growing concerns about the job market constrained sales activity. While inventory has improved in recent months, it remains below historical norms, continuing to push home prices higher as demand outpaces supply. Meanwhile, the Iran war has reversed the downward trend in mortgage rates, which jumped from 5.98% before the conflict to 6.37% last week. These headwinds will likely dampen home sales while tight inventory continues to drive home prices higher, further worsening housing affordability.

Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, fell 3.6% to a seasonally adjusted annual rate of 3.98 million in March, the lowest level since June 2025, according to the National Association of Realtors (NAR). On a year-over-year basis, sales were 1.0% lower than a year ago.

The existing home inventory level was 1.4 million units in March, up 3.0% from February and 2.3% from a year ago. At the current sales rate, March unsold inventory sits at a 4.1-months’ supply, up from 3.8-months in February and 4.0-months a year ago. Inventory between 4.5 to 6 months’ supply is generally considered a balanced market.

Homes stayed on the market for a median of 41 days in March, down from 47 days in the previous month and 36 days in March 2025.

The first-time buyer share was 32% in March, down from 34% in February and unchanged from a year ago.

The March all-cash sales share was 27% of transactions, down from 31% in February but up slightly from 26% a year ago. All-cash buyers are less affected by changes in interest rates.

The March median sales price of all existing homes was $408,800, up 1.4% from last year. This marks the 33rd consecutive month of year-over-year increases. The median condominium/co-op price in March was up 2.3% from a year ago at $371,500. Recent gains for home inventory will put downward pressure on resale home prices in most markets in 2026.

All four major regions saw sales declines in March, ranging from 1.3% in the West to 8.5% in the Northeast. On a year-over-year basis, sales rose in the West (+1.3%) and South (+2.2%), while sales in the Midwest and Northeast declined (-3.2% and 12.2% respectively).

The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI rose from 70.8 to 72.1 in February due to improved affordability. On a year-over-year basis, pending sales were 0.8% lower than a year ago, according to the National Association of Realtors’ data. However, resurgence in mortgage rates driven by the Iran war could reverse the increase.



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

Read More
By
In Research & Trends

Inflation Surged to a Nearly Two-Year High in March – Eye On Housing

No Comments


Consumer prices surged to a nearly two-year high in March, driven by a spike in energy costs following the onset of the Iran war. This is the first CPI report to reflect the impact of the war, with inflation rising nearly a full percentage point from February. National gasoline average prices in March soared above $4 for the first time since August 2022, accounting for nearly three-quarters of the monthly gain in inflation and marking the largest monthly increase in the gasoline index since government began tracking in 1967. As the ceasefire remains tenuous, energy prices are expected to remain elevated for months, continuing to put upward pressure on inflation and complicating the Fed’s path toward its 2% target.

On a non-seasonally adjusted basis, the Consumer Price Index (CPI) rose by 3.3% in March from a year ago, following a 2.4% increase last month, according to the Bureau of Labor Statistics (BLS) latest report. This was the largest annual increase since May 2024. The “core” CPI, excluding the volatile food and energy components, increased by 2.6% over the past twelve months, following a 2.5% increase in February. The housing shelter index, which makes up a large portion of “core” CPI, rose 3.0% over the year, holding steady over the last two months. Meanwhile, the component index of food rose by 2.7%, and the energy component index increased by 12.5%, the largest annual increase since November 2022.

On a monthly basis, the CPI rose by 0.9% in March (seasonally adjusted), and the “core” CPI increased by 0.2%.

The price index for a broad set of energy sources rose by 10.9% in March, the largest monthly increase since September 2005, with increases in fuel oil (+30.7%), gasoline (+21.2%), and electricity (+0.8%), partially offset by a decline in natural gas (-0.9%). Fuel oil posted its largest monthly increase since February 2000. Meanwhile, the food at home index fell by 0.2%, while the food away from home index increased by 0.2% in March.

Outside of energy, the index for shelter was the largest contributor to the overall monthly increase in the all items index. Other top contributors that rose in March included indexes for airline fares (+2.7%), apparel (+1.0%), household furnishings and operations (+0.2%), education (+0.3%), and new vehicles (+0.1%). Meanwhile, the index for medical care (-0.2%), personal care (-0.5%) and used cars and trucks (-0.4%) were among the few major indexes that decreased over the month.

The index for shelter, which makes up more than 40% of the “core” CPI, rose by 0.3% in March. The index for owners’ equivalent rent (OER) rose by 0.3%, while the index for rent of primary residence (RPR) increased by 0.2% over the month.

NAHB constructs a “real” rent index to indicate whether inflation in rents is faster or slower than core inflation. It provides insight into the supply and demand conditions for rental housing. When inflation in rents is rising faster than core inflation, the real rent index rises and vice versa. The real rent index is calculated by dividing the price index for rent by the core CPI (to exclude the volatile food and energy components). In March, the Real Rent Index remained unchanged.



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

Read More
By
In Research & Trends

Job Growth Rebounds in March – Eye On Housing

No Comments


The U.S. labor market showed signs of a modest rebound in March following a weak February, as payroll employment increased and the unemployment rate edged down to 4.3%. Job growth was led by healthcare, construction, and transportation and warehousing. However, signs of cooling are emerging. Job openings posted their largest decline in nearly a year and a half in February, pointing to a potential easing in labor demand. Meanwhile, growing geopolitical uncertainty adds further downside risk to the labor market outlook.

Wage growth slowed in March, with average hourly earnings rising 3.5% year-over-year. This pace is 0.7 percentage points lower than a year ago. Importantly, wage growth has been outpacing inflation for nearly two years, which typically occurs as productivity increases.

National Employment

According to the Employment Situation Summary reported by the Bureau of Labor Statistics (BLS), total nonfarm payroll employment increased by 178,000 in March, following a downwardly revised decline of 133,000 jobs in February. Revisions to prior months were modest overall. The monthly change in total nonfarm payroll employment for January was revised up by 34,000 from +126,000 to +160,000, while the change for February was revised down by 41,000 from -92,000 to -133,000. Combined, these revisions reduced previously reported employment by 7,000 jobs.

Despite March’s rebound, job growth in early 2026 remains well below 2024 levels but better than the 2025 pace. Through March, monthly payroll gains have averaged 68,000, compared with 10,000 per month in 2025 and 122,000 in 2024.

The unemployment rate edged down to 4.3% in March from 4.4% in February. Over the month, the number of persons unemployed decreased by 332,000, while the number of persons employed declined by 64,000.

Meanwhile, the labor force participation rate—the proportion of the population either looking for a job or already holding a job—declined 0.2 percentage points to 61.9%. This marks the lowest level since December 2021 and remains below its pre-pandemic level of 63.3% recorded at the beginning of 2020. Among prime working-age individuals (aged 25 to 54), the participation rate also edged down to 83.8%.

In March, job gains were led by health care (+76,000), construction (+26,000), and transportation and warehousing (+21,000), while federal government employment continued to decline. Since reaching a peak in October 2024, federal government employment has fallen by 355,000, or 11.8%.

Construction Employment

Employment in the overall construction sector rose by 26,000 jobs in March, following a downwardly revised loss of 13,000 in February. Within the industry, residential construction added 14,300 jobs, while non-residential construction increased 12,200.

Residential construction employment now stands at 3.3 million in March, including 932,000 workers employed by builders and remodelers and nearly 2.4 million residential specialty trade contractors.

The six-month moving average of job gains for residential construction turned positive at 800 per month, ending a 14-month stretch of negative readings. However, over the last 12 months, residential construction has shed a net 29,300 jobs, marking the thirteenth consecutive annual decline and the longest stretch of annual losses since the Great Recession. Despite these declines, residential construction has gained 1,318,200 positions from its post-Great Recession low.

Meanwhile, the unemployment rate for construction workers rose to 5.6% in March on a seasonally adjusted basis, though it remains relatively low compared with historical norms.



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

Read More
By
In Research & Trends

Permit Activity Declines in March 2025

No Comments


Permits continue a downhill trend for the third month in a row. Over the first three months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 232,221. On a year-over-year (YoY) basis, this is a decline of 3.8% over the March 2024 level of 241311. For multifamily, the total number of permits issued nationwide reached 113,344. This is 3.7% below the March 2024 level of 117,695.

Year-to-date ending in March, single-family permits were down in three out of the four regions. The Northeast posted an increase of 9.2%. The Midwest was down by 1.9%, the South was down by 4.8%, and the West was down by 5.0% in single-family permits during this time. For multifamily permits, two out of the four regions posted increases. The South was up by 14.6% and the Midwest was up by 12.9%. Meanwhile, the West posted a decline of 13.0% and the Northeast declined steeply by 42.8%.

Between March 2025 YTD and March 2024 YTD, 20 states posted an increase in single-family permits. The range of increases spanned 29.6% in Alaska to 0.2% in Utah. The remaining 30 states and the District of Columbia reported declines in single-family permits with New Mexico reporting the steepest decline of 32.7%.

The ten states issuing the highest number of single-family permits combined accounted for 64.3% of the total single-family permits issued. Texas, the state with the highest number of single-family permits, issued 38,425 permits over the first three months 2025, which is a decline of 5.5% compared to the same period last year. The second highest state, Florida, was down by 8.8%, while the third highest, North Carolina, posted a decline of 0.1%.

Between March 2025 YTD and March 2024 YTD, 23 states and the District of Columbia recorded growth in multifamily permits, while 27 states recorded a decline. Alaska (+533.3%) led the way with a sharp rise in multifamily permits from 12 to 76, while New York had the biggest decline of 64.8% from 11,316 to 3,984.

The ten states issuing the highest number of multifamily permits combined accounted for 61.7% of the multifamily permits issued. Over the first three months of 2025, Florida, the state with the highest number of multifamily permits issued, experienced an increase of 48.8%. Texas, the second-highest state in multifamily permits, saw a decline of 0.5%. California, the third largest multifamily issuing state, decreased by 22.7%.

At the local level, below are the top ten metro areas that issued the highest number of single-family permits.

For multifamily permits, below are the top ten local areas that issued the highest number of permits.

Discover more from Eye On Housing

Subscribe to get the latest posts sent to your email.



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

Read More
By
In Research & Trends

Personal Income Rises 0.5% in March

No Comments


Personal income increased by 0.5% in March, following a 0.7% rise in February and a 0.6% gain in January, according to the latest data from the Bureau of Economic Analysis. The gains in personal income were largely driven by higher wages and salaries. However, the pace of personal income growth slowed from its peak monthly gain of 1.4% in January 2024.

Real disposable income, the amount remaining after adjusted for taxes and inflation, inched up 0.5% in March, following a 0.4% increase in February and 0.2% gain in January. On a year-over-year basis, real (inflation-adjusted) disposable income rose 1.7%, down from a 6.5% year-over-year peak recorded in June 2023. No adjustments were made to personal income for the federal employees’ deferred resignation program in March, as participants are still considered as employed and continue to receive compensations until their official separation from the federal government.

Meanwhile, personal consumption expenditures rose 0.7% in March, building on a 0.5% increase in February. Real spending, adjusted to remove inflation, increased 0.7% in March, with expenditures on goods climbing 1.3% and spending on services up 0.4%.

As spending outpaced personal income growth, the personal savings rate dipped to 3.9% in March. With inflation eroding compensation gains, people are dipping into savings to support spending. This trend will ultimately lead to a slowing of consumer spending.

Discover more from Eye On Housing

Subscribe to get the latest posts sent to your email.



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

Read More
By
In Research & Trends

March Private Residential Construction Spending Dips

No Comments


Private residential construction spending declined by 0.4% in March, largely driven by a decrease in home improvement spending. This decline followed five consecutive months of growth. Despite the monthly drop, spending remained 2.8% higher than a year ago, showing the resilience of the housing market.

According to the latest U.S Census Construction Spending data, improvement spending declined by 1.2% in March, aligned with the weakness in the Remodeling Market Sentiment of the first quarter of 2025. Still, spending on improvements was 13.4% higher than in March of 2024. Meanwhile, spending on single-family construction edged up by 0.1% in March, continuing its growth after a five-month decline from April to August 2024. However, single-family construction spending remained 0.8% lower than a year ago. Multifamily construction spending stayed unchanged in March, staying in the downward trends that began in December 2023. Compared to March 2024, it was down 12.1%.

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 under the pressure of elevated interest rates and concerns over building material tariffs. Multifamily construction spending growth has also slowed down after the peak in July 2023. Meanwhile, improvement spending has increased its pace since late 2023.

Spending on private nonresidential construction was up 1.6% over a year ago. The annual private nonresidential spending increase was mainly due to higher spending for the class of power ($8.7 billion), followed by the manufacturing category ($8.1 billion).

Discover more from Eye On Housing

Subscribe to get the latest posts sent to your email.



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

Read More
By
In Research & Trends

Existing Home Sales Receded in March

No Comments


Existing home sales declined in March, according to the National Association of Realtors (NAR), as affordability challenges continued to weigh on the market. For the first time, the median home price surpassed $400,000 for the month of March, underscoring the ongoing pressure on prospective buyers. While mortgage rates have eased slightly, persistent economic uncertainty may continue to limit buyer activity in the near term.

While existing home inventory improves and the Fed continues lowering rates, the market faces headwinds as mortgage rates are expected to stay above 6% for longer due to an anticipated slower easing pace in 2025. These prolonged rates may continue to discourage homeowners from trading existing mortgages for new ones with higher rates, keeping supply tight and prices elevated. As such, sales are likely to remain limited in the coming months due to elevated mortgage rates and home prices.

Total existing home sales, including single-family homes, townhomes, condominiums, and co-ops, declined 5.9% to a seasonally adjusted annual rate of 4.02 million in March. On a year-over-year basis, sales were 2.4% lower than a year ago.

The share of first-time buyers rose to 32% in March, up from 31% in February and unchanged from March 2024.

The existing home inventory level was 1.33 million units in March, up 8.1% from February and 19.8% from a year ago. At the current sales rate, March unsold inventory sits at a 4.0-months’ supply, up from 3.5 months in February and 3.2 months in March 2024. This inventory level remains low compared to balanced market conditions (4.5 to 6 months’ supply) and illustrates the long-run need for more home construction.

Homes stayed on the market for an average of 36 days in March, down from 42 days in February but up from 33 days in March 2024.

The March all-cash sales share was 26% of transactions, down from 32% in February and 28% a year ago.

The March median sales price of all existing homes was $403,700, up 2.7% from last year. This marked the 21st consecutive month of year-over-year increases. The median condominium/co-op price in March was up 1.5% from a year ago at $363,000. This rate of price growth will slow as inventory increases.

In March, existing home sales declined across all four major U.S. regions. The West experienced the steepest drop, with sales falling 9.4%, followed by the South (-5.7%), the Midwest (-5.0%), and the Northeast (-2.0%). On a year-over-year basis, sales rose slightly in the West by 1.3%, declined in the South and Midwest by 4.2% and 3.1% respectively, and remained unchanged in the Northeast.

The Pending Home Sales Index (PHSI) is a forward-looking indicator based on signed contracts. The PHSI fell from 70.6 to an all-time low of 67.3 in February. This decline suggests elevated home prices and higher mortgage rates continue to constrain affordability. On a year-over-year basis, pending sales were 9.9% lower than a year ago, per National Association of Realtors data.

Discover more from Eye On Housing

Subscribe to get the latest posts sent to your email.



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

Read More
By
Load More
Pin It