Distribution of 1-4 Unit Residential Construction Loans Among Banks by Asset Size

2023-03-30T09:14:50-05:00

By Jesse Wade on March 30, 2023 • According to NAHB analysis of Federal Deposit Insurance Corporation (FDIC) data, large banks (assets greater than $10 billion) have increased their share of the residential construction loan market above pre-Great Recession levels in recent years. A 1-4 family residential construction loan is used for residential 1-4 family construction and land development. The majority of 1-4 residential construction loans are still held by small banks with less than $10 billion in assets, but their combined share of the residential construction market has decreased from 2014 highs. The total balance of outstanding 1-4 residential construction loans was $104.8 billion at the end of 2022. The most recent AD&C analysis notes that this loan balance is increasing because newly built homes are remaining in inventory for longer as builders wait for buyers to return to the market.  This balance has risen from a minimum of $42.3 billion over the past 10 years but remains much lower than the balance in 2008 ($158.1 billion).  The share of residential construction loans has fluctuated as markets recovered and returned to normal following the Great Recession. Smaller banks (less than $10 billion in assets) held a 66.34% share of residential construction loans in 2014; this share fell to 52.37% in 2022. Scaling the residential construction loan balances by total assets, the largest banks have the lowest concentration of residential construction lending. Banks with more than $100 million in assets but less than $1 billion have the highest share of residential construction loans relative to total assets. By the end of 2022, the share of residential construction loan balance to total assets was 2.01% for banks with assets between $100 million and $1 billion — this is the highest ratio historically among all the bank sizes. Across all bank sizes, the share of residential construction loans to total assets continues to remain low relative to 2008. Another differentiation among the bank sizes is that historically, a significant majority of banks with assets between $100 million and $10 billion have held a 1–4 residential construction loan balance. Approximately nine out of ten banks with this asset size held a balance in 2022. For banks with more than $10 billion in assets, the share drops to around eight in ten. The smallest banks with assets less than $100 million have seen a continual drop in the share that hold residential construction loans. In 2008, 67.98% of banks with assets less than $100 million held a 1-4 residential construction loan balance; this share fell 14.37 percentage points to 53.61% by 2022. Across all banks, the proportion that have a residential construction loan balance reached a 14-year maximum at 83.57% in 2022. While only about half of banks with under $100 million in assets hold a 1-4 residential construction loan balance, the lowest of any bank size group, 37.71% of these small banks have an outstanding 1-4 residential construction loan balance that exceeds their nonresidential construction loan balance, the second largest proportion. In 2008, the proportion of banks with more than $100 million but less than $1 billion in assets that had a larger 1-4 residential construction loan balance than nonresidential construction was 27.57%. During the Great Recession, this proportion fell to 22.37% but has well surpassed the 2008 level by reaching 37.72% in 2022. For banks with assets between $1 billion and $10 billion, their proportion in 2022 was 11.66%, which is 2.24 percentage points lower than their 2008 level. The largest banks with more than $10 billion in assets had a proportion of 3.16% in 2022, well below their 2008 level of 13.16%. Related ‹ Construction Self-Employment Rises Post PandemicTags: construction finance, economics, finance, home building, housing, housing finance

Distribution of 1-4 Unit Residential Construction Loans Among Banks by Asset Size2023-03-30T09:14:50-05:00

Construction Self-Employment Rises Post Pandemic

2023-03-30T08:22:32-05:00

According to the 2021 American Community Survey (ACS), 23% (or close to 2.5 million) of workers employed in construction are self-employed. This is a whole percentage point higher than the share of self employed in construction in 2019, before the pandemic rattled the labor market. Even though the Covid-19 pandemic boosted self-employment across all industries, construction self-employment rates remain significantly higher than an economy-wide average of 10% of the employed labor force. Under normal circumstances, self-employment rates in construction are counter-cyclical, rising during the economic downturn and falling during the expansion. This presumably reflects a common practice among builders to downsize payrolls when construction activity is declining. Contrariwise, builders and trade contractors would offer better terms for employment and attract a larger share of pool of laborers to be employees rather than self-employed when workflow is steady and rising. The Covid-19 pandemic disrupted this natural cycle with self-employment rates rising during the post-pandemic housing boom.  The number of self-employed in construction approached 2.5 million in 2021, slightly exceeding the pre-pandemic levels, while the number of private payroll workers in construction remained slightly below the 2019 levels. As a result, the share of self-employed increased by a whole percentage point from 22% to 23%. It is likely that rising self-employment in construction reflects divergent trends within the industry – a faster V-shape recovery for home building and a slower delayed improvement for commercial construction that is less dependent on self-employed. It is also possible that some construction employees laid off during the Covid-19 recession of early 2020 were pushed into self-employment. Similarly, and consistent with economy-wide “Great Resignation” trends, some workers might have chosen self-employment because it offers more independence and flexibility in hours, pay, type and location of work. Given the widespread labor shortages in construction, securing a steady workflow was less of a concern for construction self-employed in post-pandemic times. Since the 2020 ACS data are not reliable due to the data collection issues experienced during the early lockdown stages of the pandemic, we can only compare the pre-pandemic 2019 and 2021 data (hence the omitted 2020 data in the chart above). As a result, it is not clear whether self-employed in construction managed to remain employed during the short Covid-19 recession or able to recover jobs faster afterwards, compared to private payroll workers.  It is also unclear whether the booming residential construction sector attracted self-employed from other more vulnerable or slow recovering industries, including commercial construction. The Quarterly Census of Employment and Wages (QCEW), that relies on the unemployment insurance accounting system in each state, provides data on employment and establishment counts throughout the pandemic. Even though self-employed are not covered by the QCEW, the survey reveals a shift in construction employment towards smaller size establishments.  As of January 2022, construction establishments with fewer than 50 employees were able to recover all jobs lost early in the pandemic and currently have larger payrolls than in January 2020 before the pandemic wreaked havoc on labor markets. At the same time, construction establishments with 500 or more employees have not reached their pre-pandemic employment levels, with payroll employment being 10% lower for establishments with 500-999 employees and 19% lower for the largest companies with 1,000 or more workers. Given the current record high top builder market share, a shift in construction employment towards smaller size establishments may seem puzzling but likely reflects substantial employment gains by residential construction firms and slower recovery in commercial construction. It also reflects strength in remodeling. Additional insights into construction self-employment rates can be gained by examining cross-state variation. Maine and Nevada constitute two opposites, with Maine registering the highest (38%) and Nevada showing lowest (10%) self-employment rates in construction. The substantial differences likely reflect a predominance of home building in Maine and a higher prevalence of commercial construction in Nevada. The New England states are where it takes longer to build a house.  Because of the short construction season and longer times to complete a project, specialty trade contractors in these states have fewer workers on their payrolls. The 2012 Economic Census data show that specialty trade contractors in Montana, Maine, Rhode Island, Vermont, Idaho, New Hampshire have the smallest payrolls in the nation with 5 to 6 workers, on average. The national average is close to 9 workers. As a result, a greater share of work is done by independent entrepreneurs, thus explaining high self-employment shares in these states, which matches the elevated shares of residential construction workers in these local labor forces. Related ‹ Property Tax Revenues See Largest Increase Since 2009Tags: construction, construction labor, economics, Great Resignation, home building, labor force, labor shortage, self employed in construction, state self-employment rates

Construction Self-Employment Rises Post Pandemic2023-03-30T08:22:32-05:00

Property Tax Revenues See Largest Increase Since 2009

2023-03-29T10:19:13-05:00

NAHB analysis of the Census Bureau’s quarterly state and local tax data shows that $286 billion in taxes were paid by property owners in the fourth quarter of 2022 (not seasonally adjusted).[1] State and local governments collected $714 billion in property taxes in 2022, $46 billion more than 2021. The 6.9% annual increase is the largest since property tax receipts climbed 9.3% in 2009. Property taxes accounted for 35.0% of state and local tax receipts in the four quarters ending Q4 2022, a 0.8 percentage point increase over the prior quarter but down from 36.1% one year prior. In terms of the share of total receipts, property taxes were followed by individual income taxes (30.0%), sales taxes (27.6%), and corporate taxes (7.5%). The ratio of property tax revenue to total tax revenue from the four sources has been below its pre-housing boom average of 37% for the past four quarters. Quarterly corporate income tax revenues increased as a share of the total, accounting for 6.9% of state and local tax receipts (NSA), up from 6.2%. Year-over-year growth of four-quarter property tax revenue was the first such increase since the third quarter of 2021. Four-quarter corporate income tax, individual income tax, and sales tax revenue increased 34.2%, 8.6%, and 11.5%, respectively, year-over-year. The share of property tax receipts among the four major tax revenue sources naturally changes with fluctuations in non-property tax collections. Non-property tax receipts including individual income, corporate income, and sales tax revenues, by nature, are much more sensitive to fluctuations in the business cycle and the accompanying changes in consumer spending (affecting sales tax revenues) and job availability (affecting aggregate income). In contrast, property tax collections have proven relatively stable, reflecting the long-run stability of tangible property values as well as the effects of lagging assessments and annual adjustments. [1] Census data for property tax collections include taxes paid for all real estate assets (as well as personal property), including owner-occupied homes, rental housing, commercial real estate, and agriculture. Owner-occupied and rental housing units combine to make housing’s share the largest among these subgroups. Related ‹ Employment Situation in February: State-Level AnalysisTags: corporate income taxes, income taxes, property taxes, sales taxes, state and local taxes, taxes

Property Tax Revenues See Largest Increase Since 20092023-03-29T10:19:13-05:00

Employment Situation in February: State-Level Analysis

2023-03-28T14:16:46-05:00

Nonfarm payroll employment increased in 44 states and the District of Columbia in February compared to the previous month, while five states lost jobs. Oklahoma remained unchanged. According to the Bureau of Labor Statistics, nationwide total nonfarm payroll employment increased by 311,000 in February, following a gain of 504,000 jobs in January. On a month-over-month basis, employment data was strong in Texas, which added 58,200 jobs, followed by Florida (+38,800), and California (+32,300). Oregon, New Hampshire, Kansas, Arkansas, and Maryland lost a total of 8,600 jobs.  In percentage terms, employment in Utah increased by 0.6% while New Hampshire reported a 0.2% decline between January and February. Year-over-year ending in February, 4.3 million jobs have been added, marking a more than full recovery of the labor market from the COVID-19 pandemic induced recession. All the states and District of Columbia added jobs compared to a year ago. The range of job gains spanned 611,400 jobs in Texas to 2,500 jobs added in West Virginia. In percentage terms, Nevada reported the highest increase by 5.1%, while West Virginia increased by 0.4% compared to a year ago. Across the 48 states which reported construction sector jobs data—which includes both residential as well as non-residential construction— 24 states reported an increase in February compared to January, while 19 states lost construction sector jobs. Five states remained unchanged. California added 7,600 construction jobs, while Tennessee lost 1,700 jobs. Overall, the construction industry added a net 24,000 jobs in February compared to the previous month. In percentage terms, Rhode Island increased by 1.7% while Iowa reported a decline of 1.9% between January and February. Year-over-year, construction sector jobs in the U.S. increased by 249,000, which is a 3.2% increase compared to the February 2022 level. Texas added 37,900 jobs, which was the largest gain of any state, while West Virginia lost 2,200 construction sector jobs. In percentage terms, Rhode Island had the highest annual growth rate in the construction sector by 12.4%. Over this period, West Virginia reported a decline of 6.5%. Related ‹ Consumer Confidence Increased Slightly in MarchTags: construction labor, economics, state and local markets, state employment

Employment Situation in February: State-Level Analysis2023-03-28T14:16:46-05:00

New Home Sales Remain Relatively Flat in February

2023-03-23T10:23:51-05:00

Higher mortgage rates and home prices, as well as increased construction costs contributed to lackluster new home sales in February, but signs point to improvement later in the year. Sales of newly built, single-family homes in February increased 1.1% to a 640,000 seasonally adjusted annual rate from a downwardly revised reading in January, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. However, new home sales are down 19% compared to a year ago. Builders continue to face challenges in terms of higher interest rates, elevated construction costs, and access to critical materials like electrical transformers. Access to AD&C financing will also be a challenge for builders in the coming months due to recent banking system stress. Nonetheless, the lack of existing home inventory means demand for new homes will rise as interest rates decline over the coming quarters. Indeed, there was an increase for sales of homes not yet started construction in February. There were 15,000 such sales in February (non seasonally adjusted). This is the highest monthly total since March 2022. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the February reading of 640,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory fell for the fifth straight month. The February reading indicated an 8.2 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. However, single-family resale home inventory stands at a reduced level of 2.5 months per NAR. The median new home sale price rose in February to $438,200, up 2.5% compared to a year ago. Elevated costs of construction have contributed to a rise in home prices. A year ago, roughly 15% of new home sales were priced below $300,000, while that share is now just 10% of homes sold. Regionally, on a year-to-date basis, new home sales fell in all regions, down 29.2% in the Northeast, 21.3% in the Midwest, 7.3% in the South and 40.6% in the West. Related ‹ The Fed Raises Again but Takes a More Dovish ToneTags: economics, home building, housing, new home sales, new sales, single-family

New Home Sales Remain Relatively Flat in February2023-03-23T10:23:51-05:00

The Fed Raises Again but Takes a More Dovish Tone

2023-03-22T15:18:59-05:00

The Federal Reserve’s monetary policy committee raised the federal funds target rate by 25 basis points but indicated that it was moving to a more data dependent mode as markets digest incoming risks for banks. The Fed is balancing two economic risks: ongoing elevated inflation and emerging risks to the banking system. Chair Powell noted that near-term uncertainty is high due to these risks, as well as impacts from policy actions taken to shore up liquidity. Today’s increase of the fed funds rate moved that target to an upper rate of 5%. The Fed’s projections indicate that additional increases may be in store to achieve the level of tightening necessary to ultimately bring inflation back, over time, to the Fed’s target of 2%. The “may” in the prior sentence is intentional, as the more dovish tone of the Fed’s communication moves away from prior statements that additional firming of monetary policy is required without question. The Fed noted: “The Committee will closely monitor incoming information and assess the implications for monetary policy. The Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.” Acknowledging the issues affecting a few regional banks, the Committee wrote: “The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks.” These challenges will result in tighter credit conditions, which will slow the economy and reduce inflation. The bond market appears to be expecting the Fed to cut rates during the second half of the year. However, this runs counter to communication from Fed leadership, who have suggested that higher rates need to remain in place over a longer period of time to successfully bring inflation lower. As we noted with the release of the March NAHB/Wells Fargo Housing Market Index, the health of the regional and community bank system is critical to the availability of builder and developer financing, for for-sale, for-rent and affordable housing construction. We expect these conditions to tighten and will continue to monitor lending conditions via NAHB industry surveys. Additionally, financial market stress, and possible sales of mortgage-backed securities (MBS) by some smaller banks, are likely to increase the spread between the 10-year Treasury rate and the typical 30-year fixed rate mortgage. Last week, the spread widened to approximately 300 basis points, which is well above more normalized levels. It is worth noting that the Fed did not provide any guidance indicating that it would accelerate its balance sheet roll off (after a nearly $300 billion increase  for the balance sheet last week), which is good news for housing markets. We still forecast that the top interest rates for mortgages this cycle were experienced last October, and that mortgage rates will trend lower from current levels later in 2023. The Fed also issued its new summary of economic projections. The Fed is projecting only 0.4% GDP growth in 2023 and just 1.2% for 2024. The unemployment rate is expected to increase only to 4.6% by 2024, which is below the NAHB economic outlook for labor markets given ongoing tightening of financial conditions. The Fed sees the core PCE measure of inflation of 3.6% in 2023, and then declining to 2.6% in 2024 and 2.1% in 2025 as inflation, grudgingly, returns to the Fed’s target. Slowing rent growth will be an important element of this slowing of inflation pressure. The Fed’s projected top federal funds rate is 5.1% for 2023 and then falling as the Fed eases to 4.3% to 2024 and 3.1% in 2025. The long-term rate is projected to be 2.5% suggesting easing will occur from 2024 through 2026 as markets normalize. This suggests a good runway for home building growth during the second half of the 2020s, a period of time when the structural housing deficit will be reduced. Related ‹ Existing Home Sales Surged in FebruaryTags: economics, FOMC, home building, housing

The Fed Raises Again but Takes a More Dovish Tone2023-03-22T15:18:59-05:00

Households Priced Out by Higher Interest Rates

2023-03-20T09:19:09-05:00

By Na Zhao on March 20, 2023 • New NAHB 2023 Priced-Out Estimates show that 96.5 million households are not able to afford a median priced new home, and that additional 140,436 households would be priced out of the new home market if the price goes up by $1,000. This post presents details regarding how interest rates affect the number of households that could be priced out of the new home market. For a new home with an estimated median price of $425,786 in 2023 and a modeled 30-year fixed-rate mortgage rate of 6.25%, a quarter percentage point increase in the interest rate would price out approximately 1.3 million households. The monthly mortgage payments will increase as a result of rising mortgage interest rates, and therefore higher household income thresholds would be needed to qualify for a mortgage. The table below shows the number of households priced out of the market for a new median priced home at $ 425,786 for each 25 basis-point increase in interest rates from 3.5% to 8%. When interest rates increase from 6.25% to 6.5%, approximately 1.28 million households can no longer afford buying median-priced new home. An increase from 6.5% to 7% prices approximately 1.29 million more households out of the market. And, about 917,000 households would further be squeezed out of the market if interest rates increase to 7.25% from 7%. This diminishing effect happens because only fewer households at the smaller end of (upper) household income distribution will be affected. In contrast, when interest rates are relatively low, a 25 basis-point increase affects a larger number of households at the more substantial section of the income distribution. Related ‹ NAHB 2023 “Priced Out” Estimates – State and Local Estimates

Households Priced Out by Higher Interest Rates2023-03-20T09:19:09-05:00

NAHB 2023 “Priced Out” Estimates – State and Local Estimates

2023-03-17T09:16:42-05:00

NAHB recently released its 2023 priced out estimates, showing how higher prices and interest rates affect housing affordability. The new estimates show that 96.5 million households are already not able to afford a median priced new home in 2023 due to the fact that their incomes are insufficient to qualify for the required mortgage under standard underwriting criteria.  If the median new home price goes up by $1,000, an additional 140,436 households would be priced out of the market.  These 140,436 households would qualify for the mortgage before the price increase, but not afterward. The underwriting criterion used to determine affordability is that the sum of mortgage payments, property taxes, homeowners and private mortgage insurance premiums (PITI) during the first year is no more than 28 percent of the household’s income. Key assumptions include a 10% down payment, a 30-year fixed rate mortgage at an interest rate of 3.5%, and an annual premium starting at 73 basis points for private mortgage insurance. As usual, NAHB’s latest update includes priced out estimates for all states and metropolitan areas. The priced out numbers vary with both the sizes of the local population and the affordability of its new homes. Among all the states, Florida registered the largest number of households priced out of the market by a $1,000 increase in the median-priced home in the state (9,573), followed by Texas (9,151), and California (7,243), largely because these three states are the top three populous states. The metropolitan area (or metro division) with the largest priced out effect, in terms of absolute numbers, is Houston-The Woodlands-Sugar Land, TX, where 3,054 households will be disqualified for a new median-priced home if price goes up by $1,000. The Atlanta-Sandy Springs-Alpharetta, GA metro area registers the second largest number of priced-out households (2,626), followed by Chicago-Naperville-Evanston, IL metro division (2,467) and New York-Jersey City-White Plains, NY-NJ metro division (2,065). These differing impacts of adding $1,000 to a new home price are largely due to different sizes of metro population and the affordability of new homes in each area. The largest priced-out effect is in the Houston, TX metro area, where 2.1 million households are unable to afford the median-priced new home initially, and a $1,000 increase prices out an additional 3,054. The large impact in the NY-NJ metro division is because their contains the largest population size among all metro areas. More details, including priced out estimates for every state and over 300 metropolitan areas, and a description of the underlying methodology, are available in the full study. Related ‹ Single-Family Starts Remain Lackluster but Will Rebound Later This Year

NAHB 2023 “Priced Out” Estimates – State and Local Estimates2023-03-17T09:16:42-05:00

Single-Family Starts Remain Lackluster but Will Rebound Later This Year

2023-03-16T09:18:45-05:00

Single-family production remained at an anemic pace in February as builders continue to wrestle with elevated mortgage rates, high construction costs and tightening credit conditions that threaten to be exacerbated by recent turmoil in the banking system. Led by gains in apartment construction, overall housing starts in February increased 9.8% to a seasonally adjusted annual rate of 1.45 million units, according to a report from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The February reading of 1.45 million starts is the number of housing units builders would begin if development kept this pace for the next 12 months. Within this overall number, single-family starts increased 1.1% to an 830,000 seasonally adjusted annual rate.  However, this remains 31.6% lower than a year ago. The multifamily sector, which includes apartment buildings and condos, increased 24% to an annualized 620,000 pace. Despite persistent supply-side challenges, rising builder confidence is signaling a turning point for home building later in 2023. A significant amount of housing demand exists on the sidelines and resale inventory is limited. Starts were up in February given a limited pullback for interest rates. We expect volatility in the months ahead as ongoing challenges related to construction material costs and availability continue to act as headwinds on the housing sector. However, interest rates are expected to stabilize and move lower in the coming months, and this should lead to a sustained rebound for single-family starts in the latter part of 2023. On a regional basis compared to the previous month, combined single-family and multifamily starts were 16.5% lower in the Northeast, 70.3% higher in the Midwest, 2.2% higher in the South and 16.8% higher in the West. Overall permits increased 13.8% to a 1.52 million unit annualized rate in February. Single-family permits increased 7.6% to a 777,000 unit rate. Multifamily permits increased 21.1% to an annualized 747,000 pace. Looking at regional permit data compared to the previous month, permits were 2.8% lower in the Northeast, 9.6% higher in the Midwest, 10.9% higher in the South and 30.0% higher in the West. The number of single-family units under construction is 734,000 homes. This is down 11.4% from May 2022, the cycle peak. The number of apartments under construction is 957,000. This is the highest total since Nov 1973. Given the declining pace for single-family starts in 2022, more homes are being completed than starting construction. In February, 58,600 single-family homes started construction. However, 77,100 completed construction. This difference is responsible for the ongoing decline in the number of single-family units under construction, as displayed in the chart above. Related ‹ Concrete Products Lead Building Materials Prices HigherTags: home building, housing, housing starts, multifamily, single-family, starts

Single-Family Starts Remain Lackluster but Will Rebound Later This Year2023-03-16T09:18:45-05:00

Concrete Products Lead Building Materials Prices Higher

2023-03-15T12:19:54-05:00

After four consecutive declines, the producer price index (PPI) for inputs to residential construction less energy (i.e., building materials) rose 0.3% in February 2023 (not seasonally adjusted) follow a 1.1% increase in January (revised), according to the latest PPI report. Price growth of goods inputs to residential construction, including energy, gained 0.4% over the month. Prices have increased 2.9% over the past 12 months. Ready-Mix Concrete The trend of ready-mix concrete (RMC) prices continued its historic pace as the index increased 0.8% in February after gaining 0.7% in January (revised).  RMC prices have increase in all but two months since January 2021. The monthly increase in the national data was broad-based geographically but was primarily driven by a 4.2% increase in the Northeast. Prices 0.8% in the West, 0.5% in the South, and were unchanged in the Midwest. Softwood Lumber The PPI for softwood lumber (seasonally adjusted) fell 0.8% in February–the seventh consecutive monthly decline. Since peaking in March 2022, the index has fallen by nearly half (-47.1%) but is still nearly 20% above the January 2020 level. Gypsum Building Materials The PPI for gypsum building materials climbed 0.5% in February after edging down very slightly the month prior. Gypsum products prices are 12.5% higher than they were a year ago but began stabilizing in August 2022. Prices have been stable—up just 0.7%–in the six months since. Steel Mill Products Steel mill products prices increased 2.6% in February, more than offsetting the 2.4% decline seen the month prior. This was the first monthly price increase since May 2022. Even so, prices have dropped 26.0% since May 2022 and are down 21.2% over the past 12 months. Services The price index of services inputs to residential construction rose 0.2% in February following a 0.7% increase in January. Prices have declined 7.7% over the past year despite increasing in four of the past five months. Transportation of Freight The price of truck, deep sea (i.e., ocean), and rail transportation of freight decreased 0.8%, 0.5% and 1.1%, respectively, in February. Of the three modes of shipping, trucking prices have exhibited the largest slowdown since early 2022. Related ‹ Builder Confidence Edges Higher in March but Future Outlook UncertainTags: Building Materials, building materials prices, construction costs, Gypsum, inflation, lumber, ppi, producer price index, ready-mix concrete, softwood lumber, steel

Concrete Products Lead Building Materials Prices Higher2023-03-15T12:19:54-05:00
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