Nearly Two-Thirds of Homes Started in 2021 are in Community Associations

2022-12-15T10:24:18-06:00

By Ashok Chaluvadi on December 15, 2022 • According to data from the Census Bureau’s Survey of Construction (SOC), 65.5 percent of single-family homes started in 2021 were built within a community or homeowner’s association. Since the re-design of the SOC in 2009, this was the second highest percentage for new homes started with an association. The Census Bureau defines community or homeowner’s associations as “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory.”  In absolute numbers, a total of 729,109 homes with community associations were started in 2021, compared to 657,378 in 2020. The share of all new homes built within a community or homeowner’s association declined slightly to 62.0 percent in 2019, after a decade long upward trend. In 2009, the share was 47.6 percent, and in 2010, 48.0 percent. Since 2011, more than 50 percent of all homes have been built within a community or homeowner’s association. In 2018, the share was 62.5 percent, the second highest and in 2021, 67.1 percent was the highest since 2009. When analyzed by the 9 census divisions, the highest share was in the Mountain Division, where 82.4 percent of new homes were in such communities. In the New England Division, on the other hand, the share was only 34.5 percent. In the West South-Central Division, 73.1 percent of new homes started in 2021 had a community or homeowner’s association, followed by the South Atlantic Division at 71.3 percent, and the East North-Central Divisions at 54.9 percent. In the Pacific Division, the share was 52.1 percent, while in the West North-Central Division, it was 50.6 percent. In the East South-Central and Middle Atlantic Division 39.4 percent and 35.8 percent of new homes started in 2021 were within a community or homeowner’s association, respectively. Related ‹ Property Taxes by State – 2021Tags: eye on the economy, home building, housing economics, single-family

Nearly Two-Thirds of Homes Started in 2021 are in Community Associations2022-12-15T10:24:18-06:00

Custom Home Building Share Declines Slightly

2022-12-08T09:15:08-06:00

By Ashok Chaluvadi on December 8, 2022 • According to data from the Census Bureau’s Survey of Construction (SOC), custom homes accounted for 17.6 percent of new single-family homes started—down slightly from the 17.8 percent recorded in 2021 and the lowest the annual custom home share has been since the 2005 re-design of the SOC.  The custom home market consists of contractor-built and owner-built houses—homes built one at a time for owner occupancy on the owner’s land, with either the owner or a builder acting as a general contractor. The alternatives are homes built for sale (on the builder’s land, often in subdivisions, with the intention of selling the house and land in one transaction) and homes built for rent.  In 2021, 77.0 percent of the single-family homes started were built for sale, and 5.4 percent were built for rent. Although the custom-home percentage declined slightly in 2021, more single-family homes were started; so, the number of custom homes started in 2021 (199,683) was actually higher than the number of custom homes started in 2020 (176,499). The quarterly published statistics show that the custom-home share of single-family starts stayed relatively flat through the second quarter of 2022. Although the quarterly statistics are more timely, they lack the geographic detail available in the annual data set. When analyzed by the 9 census divisions, the annual data show that the highest custom home share in 2021 was 40.1 percent New England Division. In the South Atlantic Division, on the other hand, the share was only 11.5 percent. In the East South-Central Division, 38.8 percent of new homes started were contractor-built or owner-built houses, followed by the East North-Central Division at 32.8 percent and 31.5 percent in the Middle Atlantic Division. In the West North Central Division 20.3 percent of new homes started where custom homes, followed by 15.0 percent in the West South-Central Division, 14.7 percent in the Pacific Division, and 12.9 percent in the  Mountain Division. Related ‹ Share of Bedrooms in New Homes in 2021Tags: construction, economics, eye on the economy, home building, housing economics, starts

Custom Home Building Share Declines Slightly2022-12-08T09:15:08-06:00

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