Housing Figures: Residential Construction at $507 Billion in August
October 15, 2019
Housing Figures is our monthly round-up of the top news stories related to residential new construction spending and the latest market numbers.
In our first Housing Figures, we’re looking at the latest in residential construction spending as well as what the latest market indicators are suggesting about a possible recession. We’re also looking at what’s happening in single-story home construction and green single-family residential construction.
Residential construction up 0.9 percent from July’s adjusted rate. August ended at a seasonally adjusted annual rate of $507.2 billion in residential new construction, which represents a 0.9 percent increase from July’s revised estimate of $502.5 billion. The figures represent a 5 percent decrease from 2018. [Housing Wire]
Housing market indicators point to continued growth. Data on the housing market has shown new home construction is rising at the fastest pace since 2007 in August, suggesting if there’s a downturn, it might happen in spite of the residential real estate market. [MarketWatch]
September forecast hints at strong fall housing market. Freddie Mac’s September Forecast is suggesting that there will be a strong housing market this fall thanks to continued low mortgage rates. Freddie Mac’s chief economist says that despite fears of a slowdown, the housing market continues to be a bright spot. [Housing Wire]
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Single-story home construction increased in 2018. While two-story home starts were greater than one-story in 2018, the two story-share decreased from 55 to 53 percent from 2017 to 2018. Meanwhile, the one-story home share increased from 45 to 47 percent. The growth was largely concentrated in the south. [Eye on Housing]
Green single-family residential construction continues to grow. Research from the National Association of Home Builders indicates the market share for green single-family homes will climb to 38 percent this year and grow to 44 percent by 2022. Compare that to a mere two percent market share in 2005. [Builder]
Homebuyers who bought in 2012 now have a combined equity in the billions. People who purchased homes in 2012, when prices reached their lowest point following the housing crash in 2008, have earned a combined total of $203 billion in home equity. Individually, that means the typical 2012 homebuyer earned $141,000 (or 261 percent) in home equity. [Redfin]
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