Housing Developments

Congress returns this week for a lame duck session that will see a sprint to pass Democrats' priorities before Republicans take control of the House.

The declining market for new homes purchases is driving up the share of single-family homes being built for rent. Have a happy Thanksgiving; the Daily Drill is taking next week off. We'll see you again on Monday, Nov. 28.

Yesterday, we said that home builder confidence was down, which would lead to fewer housing being built. Today, government data showed that home starts did indeed fall last month and are down more than 7% year to date. See, we know what we're talking about!

The NAHB/Wells Fargo Housing Market Index (HMI) declined again in November for the 11th consecutive month to a decade-low reading of 33. Rising interest rates and stubbornly high home prices are pushing buyers out of the market and home builders are feeling the effects.

Are we in a home buyers' market or a sellers' market? How about neither!

Get ready for a crazy week! We should finally have some clarity on the balance of power in Congress. But all eyes are on Tuesday, as the GOP will press forward with leadership votes and there might be an announcement from a particular Florida man.

The markets sure did like the inflation data this week showing a slowdown in price gains. Mortgage rates may follow. Also, there was interesting data on manufactured housing demand from a recent poll. Check it out: https://morningconsult.com/2022/11/10/manufactured-housing-investment-dwelling-units-mobile-homes/.

The NAHB/Wells Fargo Housing Opportunity Index (HOI) showed that housing affordability is at its lowest level in 10 years, a surprise to no one.

Tomorrow is election, and beyond the results on the tickets, things could get interesting in Congress.

First-time home buyers are becoming increasingly older and rare in the current housing market, as home prices continue to stay near record highs and interest rates soar.

How are the 2022 midterm elections going to shake out next week? NAHB CEO Jerry Howard and Chief Lobbyist Jim Tobin give their predictions for the balance of power and impact on housing.

The Fed raised interest rates by 0.75 basis points yesterday, as expected. Chair Powell's remarks have caused some market turmoil as he indicated rates might need to go higher than previously thought to combat inflation. But there is some nuance that is being overlooked in those remarks. More at https://eyeonhousing.org/2022/11/an-end-to-large-rate-hikes-from-the-fed/

The Fed will raise interest rates today, probably by 0.75 basis points. But what signals will Chair Powell provide in his remarks to indicate the Fed's actions moving forward? In a related note, building material prices are coming down.

Homeownership is still highly desired in the U.S., with most adults saying that owning a home provides security and financial stability.

The GDP numbers last week brought some good news as the economy did better than expected in Q3. But housing's share of GDP shrunk as soaring mortgage rates are weighing on the housing market.

A debate is underway in Washington over the Low Income Housing Tax Credit and a great piece in Roll Call covers it (https://rollcall.com/2022/10/25/lawmakers-advocates-eye-year-end-bills-for-housing-credit/). Also, a Silicon Valley startup is looking to change the way apartments are rented.

More prospective home buyers seem to be interested in new homes, according to the latest NAHB survey. With existing home inventory so low and interest rates going ever higher, many may be thinking purchasing a new home now rather than later is the best option.

New home sales data was released today and to the surprise of exactly no one, the numbers are terrible.

A quick look at the dismal existing home sales data released last week. And if you're travelling to Kansas City for the NAHB Fall Leadership Meetings, we'll see you soon!

Housing Development talks to Black Buffalo, a company focused on manufacturing large-scale 3D printers for use in home building. Listen to find out more about the prospects for widespread use of 3D printers for homes.