Percent Share of 5,000+ Square Foot Homes Rises in 2021

2022-09-15T10:16:25-05:00

By Ashok Chaluvadi on September 15, 2022 • According to the annual data from the Census Bureau’s Survey of Construction (SOC), the share of new homes started with 5,000 square feet or more of living space stood at 2.90 percent in 2021, up from 2.50 percent in 2020.  A total of 33,000 5,000+ square-foot homes were started in 2021, compared to 25,000 in 2020.  The increase in number and share of  5,000+ square foot homes is consistent with the rising trend in median and average size of new single-family homes seen during the pandemic. In 2015, the number of 5,000+ square feet homes started was the highest since 2007, and their share of the new market was the highest since the inception of the series in 1999. In the boom year of 2006, 3.0 percent or 45,000 new homes started were 5,000 square feet or larger. In 2007, the share of new homes that large increased to 3.6 percent while the total number that year fell to 37,000. In 2008, only 20,000 such homes were started, or 3.2 percent of the total.  From 2009 to 2012, the number of these large homes started remained well under 20,000 a year, accounting for less than 3 percent of single-family construction during this period. When analyzed by the different characteristics, 82 percent of 5,000+ square feet home started in 2021 have a porch, 74% have a finished basement, 68 percent each have a patio, 66 percent have a 3-or-more car garage, 63 percent have 4 bathrooms or more, 59 percent have a community association and 55 percent have 5 bedrooms or more. Related ‹ Gypsum Products, Transformers, and Concrete Prices Post Historic 12-Month IncreasesTags: construction, economics, eye on the economy, home building, housing economics, housing trends report, single-family

Percent Share of 5,000+ Square Foot Homes Rises in 20212022-09-15T10:16:25-05:00

High Home Prices Is Main Reason Active Buyers Can’t Seal the Deal

2022-08-04T09:16:36-05:00

By Rose Quint on August 4, 2022 • An earlier post revealed that 63% of buyers who were actively engaged in the process of finding a home in the 2nd quarter of 2022 have spent 3+ months searching for a home without success. The most common reason these long-term searchers cite for not having bought by now is their inability to find an affordable home (43%).  In second place is getting outbid by other buyers (35%), followed by the inability to find a home in a desirable neighborhood (32%), or a home with desirable features (29%). When asked what they are most likely to do next if still unable to find a home in the next few months, 46% of active buyers searching for 3+ months said they will continue looking for the ‘right’ home in the same location (down from 52% a quarter earlier); 38% will expand their search area (unchanged), 30% will accept a smaller/older home (up from 20%), and 26% will buy a more expensive home (up from 19%) Meanwhile, the share who plan to give up their home search until next year or later was unchanged at 25% between the first and second quarters of 2022.  This share has increased or remained flat in each of the past four quarters. **Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets.  The HTR is produced quarterly to track changes in buyers’ perceptions over time.  All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.  Results are seasonally adjusted.  A description of the poll’s methodology and sample characteristics can be found here.  This is the final post in a series of six highlighting results for the 2nd quarter of 2022. Related ‹ Housing Share of GDP Edges Lower in the Second Quarter of 2022Tags: housing economics, housing trends report

High Home Prices Is Main Reason Active Buyers Can’t Seal the Deal2022-08-04T09:16:36-05:00

More Prospective Buyers Are Actively Searching for a Home

2022-08-03T09:18:22-05:00

By Rose Quint on August 3, 2022 • The share of prospective home buyers who are actively engaged in the process to buy a home rose to 49% in the second quarter of 2022, after declining for three straight quarters.  The pivot is likely driven by less competition from buyers who have exited the market, which has encouraged many of those remaining to become active buyers. Except for the South, the share of prospective buyers actively searching for a home rose in every region between the first and second quarters of 2022: Northeast (50% to 54%), Midwest (40% to 51%), and West (46% to 57%). In the second quarter of 2022, the share of active buyers who have been looking for a home for 3+ months fell to 63%, down from 67% in the previous quarter.  The share is at its lowest point in almost two years (since the third quarter of 2020, when it was 62%). Before the pandemic (between the first quarters of 2018 and 2020), fewer than 60% of active buyers shopped for a home for 3+ months. **Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets.  The HTR is produced quarterly to track changes in buyers’ perceptions over time.  All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.  Results are seasonally adjusted.  A description of the poll’s methodology and sample characteristics can be found here.  This is the fifth in a series of six posts highlighting results for the 2nd quarter of 2022. Related ‹ Second Quarter of 2022 Homeownership Rate at 65.8%Tags: housing economics, housing trends report

More Prospective Buyers Are Actively Searching for a Home2022-08-03T09:18:22-05:00

The Mix of Home Buyers Is Changing, Leading to Improved Affordability

2022-08-02T09:17:42-05:00

By Rose Quint on August 2, 2022 • For the first time since 2020, affordability expectations improved in the second quarter of 2022.  After rising steadily for five straight quarters, the share of buyers who can only afford a minority of the homes for sale in their markets declined to 77%, down from 81% a quarter earlier.  Conversely, the share able to afford at least half the homes available rose from 19% to 23%.  A likely reason for the pivot is that the exit of 1st-time home buyers from the market is tilting the composition of the pool of buyers towards wealthier buyers better able to absorb recent increases in mortgage rates. Affordability expectations between the first and second quarters of 2022 improved in two regions.  In the West, the share of buyers only able to afford a minority of homes dropped from 78% to 70%; and in the Northeast, from 77% to 73%.  The share edged up in the Midwest (83% to 84%) and in the South (79% to 82%). **Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets.  The HTR is produced quarterly to track changes in buyers’ perceptions over time.  All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.  Results are seasonally adjusted.  A description of the poll’s methodology and sample characteristics can be found here.  This is the fourth in a series of six posts highlighting results for the 2nd quarter of 2022. Related ‹ Private Residential Spending Declines in JuneTags: housing economics, housing trends report

The Mix of Home Buyers Is Changing, Leading to Improved Affordability2022-08-02T09:17:42-05:00

Buyers’ Expectations of Housing Availability Improve

2022-08-01T09:16:25-05:00

By Rose Quint on August 1, 2022 • For the first time since 2020, prospective buyers expect housing availability to improve.  After falling steadily for five quarters, the share expecting the home search to get easier in the months ahead grew from 17% to 22% between the first and second quarters of 2022.  Less competition from buyers priced-out of the market by recent increases in mortgage rates is likely driving this improvement.  In contrast, 67% expect the search to get harder/stay the same, down from 74% a quarter earlier. Housing availability expectations improved in all regions except the Midwest.  In the West, 31% of buyers expect easier conditions, up from 18% a quarter earlier. In the Northeast, the share rose from 22% to 28%; in the South, from 17% to 18%; while in the Midwest, it edged down from 15% to 14%. Another measure confirms that buyers’ perceptions of housing inventory pivoted in the second quarter of 2022.  After declining for five straight quarters, the share of buyers seeing more homes available for-sale* in their markets turned around in the second quarter of 2022, rising to 28% from 23% a quarter earlier. Across regions, inventory perceptions improved or remained unchanged.  From the first to the second quarter of 2022, the share of buyers seeing more homes on the market rose in the West (23% to 36%) and the Midwest (21% to 23%), while remaining the same in the NE (27%) and SO (24%). ** Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets.  The HTR is produced quarterly to track changes in buyers’ perceptions over time.  All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.  Results are seasonally adjusted.  A description of the poll’s methodology and sample characteristics can be found here.  This is the third in a series of six posts highlighting results for the 2nd quarter of 2022. Related ‹ Inflation Causes Real Disposable Income to Slip in JuneTags: housing economics, housing trends report

Buyers’ Expectations of Housing Availability Improve2022-08-01T09:16:25-05:00

Some Buyers Turning to New Construction

2022-07-29T09:23:55-05:00

By Rose Quint on July 29, 2022 • After falling steadily for five quarters, the popularity of new homes rebounded in the second quarter of 2022, as 21% of prospective buyers reported looking for a newly-built home – up from 19% a quarter earlier.  A possible reason for this pivot is the recent growth in the inventory of new homes for-sale, while the supply of existing homes on the market remains very tight. Regionally, the increased interest for new homes is driven entirely by the West, where the share of buyers looking to buy a newly-built home rose from 24% in the first quarter of 2022 to 30% in the second quarter. In contrast, the share declined in all other regions during this period. * Results come from the Housing Trends Report (HTR) – a research product created by the NAHB Economics team with the goal of measuring prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets.  The HTR is produced quarterly to track changes in buyers’ perceptions over time.  All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.  Results are seasonally adjusted.  A description of the poll’s methodology and sample characteristics can be found here. This is the second in a series of six posts highlighting results for the 2nd quarter of 2022.  Related ‹ The Second Quarter of Negative Growth: A Recession?Tags: housing economics, housing trends report

Some Buyers Turning to New Construction2022-07-29T09:23:55-05:00

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