Can a National Zoning Atlas Chart a Way Out of the US Housing Crisis?

March 11, 2024
Kriston Capps - Bloomberg

Two years ago, a Montana think tank called the Frontier Institute released a new tool to help push the group’s advocacy for pro-housing reforms: a zoning atlas, one of the first of its kind. The atlas used parcel-level data to analyze local regulations that restrict how and where homes can be built, an issue for a state with skyrocketing housing costs. The study revealed that more than 70% of residential areas in Montana’s most in-demand communities prohibited the construction of even modest duplex homes, much less apartment buildings.


Gauge of US Pending Home Sales Jumps to a Five-Month High

March 4, 2024
Vince Golle - Bloomberg

A gauge of pending US existing-home sales rebounded sharply in December to a five-month high, suggesting the recent drop in mortgage rates is helping to stabilize the resale market.

The National Association of Realtors’ index of contract signings increased 8.3% to 77.3 after holding at a record low a month earlier, according to data out Friday. Last month’s advance — the largest since mid-2020 — exceeded all estimates in a Bloomberg survey of economists.


Myrtle Beach Eyes Austin’s Boomtown Crown

February 26, 2024
Conor Sen - Bloomberg

Cities such as Boise, Austin and Phoenix defined the pandemic housing boom. Now, as falling mortgage rates raise the prospect of 2024 being a strong year for homebuilding, new “edge” markets are seeing a surge in activity.

This is because three factors that dictate where builders put up houses have changed: the land they control, the economics used to underwrite new deals, and signaling from the stock market about how aggressive they should be. It’s all pushing builders away from the big growth markets of the 2010s and into areas that haven’t been built up — or bid up — to the same extent.


As ‘Mansion Taxes’ Catch On in US Cities, Los Angeles Offers Lessons

February 19, 2024
Sarah Holder - Bloomberg

The new villain on the seventh season of the hit reality real estate show Selling Sunset wasn’t a sassy new luxury broker not there to make friends. It was a real estate tax.

“Makes me nauseous even thinking about it,” real estate agent Mary Bonnet said of the so-called mansion tax in the season’s first episode, as she surveyed the living room of a $26 million eight-bedroom home in Brentwood.

The tax, known as Measure ULA, was pitched in 2022 as a fix to Los Angeles’ dire housing crisis. Passed by ballot measure with 58% of voters in favor, the measure created a new land transfer fee on real estate transactions over $5 million, and directed the proceeds to affordable housing projects, tenant protections and homelessness prevention efforts.


Developer Halts 'Co-Living' Building Projects in Houston, Tampa and Phoenix

February 12, 2024
Richard Korman - Engineering News-Record

A developer with an ambitious business model for attracting young urban dwellers to clubs and shared rental apartments has stopped work on projects in Houston, Tampa and Phoenix, according to news reports from those cities.

Mr. Korman may be contacted at kormanr@enr.com


Harmony Housing Affordable Development Launches with Acquisition of the Development Business of Greystone Affordable Development

February 5, 2024
Greystone

RALEIGH, N.C., Jan. 03, 2024 (GLOBE NEWSWIRE) -- Harmony Housing Affordable Development Inc. (HHAD), a newly-formed wholly-owned subsidiary of Harmony Housing, is acquiring the property development, development management, and advisory business of Greystone Affordable Development, effective immediately. Harmony Housing Affordable Development Inc.'s mission is to increase and preserve critically needed affordable housing in the U.S., which it has committed to doing through its predecessor's history as a leading affordable housing developer.

Throughout its history, the development group has preserved, redeveloped, and constructed over 16,725 units of affordable housing for families and seniors in both rural and urban areas, helping to address the critically low levels of affordable housing for underserved populations in the U.S. As part of Harmony Housing, the group is now closely aligned with an established owner / operator of similar housing with which the group has partnered in the past.


Wall Street Expects Homebuilders’ Shocking 2023 Rally to Continue Into Next Year

January 29, 2024
Norah Mulinda - Bloomberg

Homebuilder stocks are on pace for their biggest annual advance in over a decade, a remarkable feat considering how rising interest rates sent mortgage rates soaring in 2023. Now that bond yields are coming down, Wall Street expects that rally to carry over into 2024.

When rates climb, homebuilders typically feel the pinch. This year was an anomaly as tight inventory coupled with insatiable demand outweighed high borrowing costs. As a result, shares of homebuilders soared, with the group on track to finish 2023 at a record high. The sector is up 79%, far surpassing the S&P 500 Index’s 24% gain.

And regardless of whether the Federal Reserve orchestrates a soft or hard landing for the US economy next year, its expected rate cuts have homebuilders poised to continue to outperform the broader market, said Seaport Research analyst Kenneth Zener, who accurately predicted the sector’s performance for two straight years. Zener currently has a buy-rating on all but one homebuilder stock.


US 30-Year Mortgage Rate Slides to 6.67%, Lowest Since June

January 22, 2024
Prashant Gopal - Bloomberg

Mortgage rates in the US continued their slide, dropping to the lowest level since June and bolstering hopes for a housing rebound in the new year.

The average for a 30-year, fixed loan was 6.67%, down from 6.95% last week, Freddie Mac said in a statement Thursday.

Borrowing costs have fallen each week since peaking at 7.79% in late October. The decline is welcome news for would-be homebuyers who’ve been postponing purchases in one of the least-affordable housing markets on record. Many economists expect demand for homes to increase and mortgage rates to slip further as the Federal Reserve winds down its inflation-fighting campaign.


US Housing Market Shows Signs of Life After Mortgage Rates Fall

January 16, 2024
Katia Dmitrieva & Michael Sasso - Bloomberg

Even before the Federal Reserve has begun cutting interest rates, the mere anticipation of such moves is already thawing the US housing market.

A series of reports this week showed activity coming back to life: Housing starts surged to a six-month high, sales of previously owned homes picked up from a 13-year low and builder optimism was boosted by increased interest from prospective buyers. Meanwhile, Americans’ home-buying plans rose this month by the most in more than a year.

Reprinted courtesy of Katia Dmitrieva, Bloomberg and Michael Sasso, Bloomberg


US Housing Starts Unexpectedly Rise to a Six-Month High

January 8, 2024
Michael Sasso - Bloomberg

US new-home construction unexpectedly surged in November to a six-month high, benefiting from a dearth of existing houses on the market and suggesting the crunch in residential real estate is easing.

Residential starts increased 14.8% last month to a 1.56 million annualized rate, government data showed Tuesday. The median forecast in a Bloomberg survey of economists called for a 1.36 million pace.

Construction of single-family houses jumped 18% to the highest level since April 2022, while starts of multifamily projects increased 6.9%.


US Homebuilder Sentiment Rises for First Time in Five Months

January 2, 2024
Michael Sasso - Bloomberg

US homebuilder sentiment improved in December for the first time in five months as falling mortgage rates led to a pickup in prospective-buyer traffic and sales expectations.

The National Association of Home Builders/Wells Fargo gauge rose 3 points to 37, according to data out Monday. The figure matched the median forecast in a Bloomberg survey of economists.


Toll Brothers Shares Climb as Mortgage Rate Pullback Stokes Demand

December 23, 2023
Patrick Clark - Bloomberg

Toll Brothers Inc. stock rose as the homebuilder’s executives pointed to “solid” demand in recent weeks as mortgage rates pulled back from two-decade highs.

“It sure feels good heading into the spring season,” Chief Executive Officer Douglas Yearley said in an earnings call Wednesday. “We think we will be able to raise prices. And we’ll be able to continue to manage and hopefully continue to modestly reduce the incentive.”


What the YIMBY Winning Streak Means

December 16, 2023
M. Nolan Gray & Salim Furth - Bloomberg

Until recently, zoning was a sleepy and unsexy corner of the public policy world, a topic best left to bureaucrats in the basements of city halls. It’s probably still unsexy, but it’s far from sleepy. In 2023, zoning reform went national, thanks to advocacy by the pro-housing YIMBY (Yes In My Backyard) movement.

In California, Governor Gavin Newsom signed 56 bills designed to tackle the state’s housing crisis. Many extended existing reforms, making it easier to build accessory dwelling units (ADUs) and apartments — even in exclusionary coastal areas. Other bills closed loopholes commonly used to block housing. SB 4, also known as the “Yes in God’s Backyard” act, will allow faith groups to build affordable housing on their property.


New US Home Construction Increased Unexpectedly in October

December 11, 2023
Augusta Saraiva - Bloomberg

New US home construction unexpectedly picked up in October, indicating builders continue to benefit from a limited supply in the resale market.

Residential starts increased 1.9% last month to a 1.37 million annualized rate, the highest in three months, government data showed Friday. Construction of single-family houses edged up 0.2%, also to the highest level since July.

Applications to build — a proxy for future construction — rose to 1.49 million. Permits to build one-family homes increased to the highest level since May 2022, while multifamily authorizations also rose.


Homebuilder Shorts Are Ripe for a Squeeze With Rally Gaining Strength

December 4, 2023
Norah Mulinda & Carmen Reinicke - Bloomberg

With mortgage rates retreating and inflation abating, short sellers who’d been capitalizing on the three-month slump in homebuilder stocks may need to prepare for a rebound toward year-to-date highs.

The S&P Composite 1500 Homebuilding Index has surged more than 20% in a bounce-back rally that started at the end of October and regained nearly all losses from the rout that began in July.

Reprinted courtesy of Norah Mulinda, Bloomberg and Carmen Reinicke, Bloomberg


Real Estate Stocks Soar as Fed Rate Hold Sparks Relief Rally

November 16, 2023
Norah Mulinda - Bloomberg

Real estate stocks were the second best-performing sector in the S&P 500 Index on Thursday after the Federal Reserve’s decision to hold rates steady sparked optimism that the central bank could be nearing the end of its tightening cycle.

Homebuilders and real estate investment trusts outperformed the broader market as investor appetite shifts toward more defensive, cash-producing sectors. The groups jumped 4.1% and 3.4%, respectively, compared to the S&P 500’s 1.9% gain.


US New-Home Sales Surge to Fastest Clip Since February 2022

November 13, 2023
Augusta Saraiva & Reade Pickert - Bloomberg

US sales of new houses rose in September to the fastest pace since early 2022, suggesting there’s still some appetite for homes despite soaring mortgage rates.

Purchases of new single-family homes increased 12.3% to a 759,000 annualized pace last month, government data showed Wednesday. The figure topped all estimates in a Bloomberg survey of economists.

Reprinted courtesy of Augusta Saraiva, Bloomberg and Reade Pickert, Bloomberg


US Housing Starts Rise on Pickup in Multi-Family Projects

November 6, 2023
Augusta Saraiva - Bloomberg

New US home construction rose in September, led by a pickup in multi-family groundbreakings.

Residential starts increased 7% last month after falling by the most in over a year in August, according to government data released Wednesday. Multi-family dwellings rose more than 17% after also slumping the prior month.

Applications to build — a proxy for future construction — fell to 1.47 million. Permits to build one-family homes ticked up to the highest level since May 2022, while multi-family authorizations declined to the lowest in nearly three years.


Obituary: As CEO, John F. Shea, 96, Set Contractor's Growth Foundation

October 30, 2023
Scott Lewis - Engineering News-Record

John F. Shea, chairman of U.S. tunneling contractor J.F. Shea Co., who also diversified the family owned business into homebuilding and real estate development and management, died Oct. 18 in Pasadena, Calif., at age 96, according to an announcement.

Mr. Lewis may be contacted at lewisw@enr.com


CE's Q3 Economic Forecast: Reasons to Celebrate and Worry

October 24, 2023
Construction Executive

The construction market seems to be holding strong—for now, as ABC Chief Economist Anirban Basu reported in “Construction Executive’s 2023 Q3 Economic Update and Forecast” on Sept. 27. But while America has yet to see the predicted recession—certainly something to celebrate—there are still reasons to remain wary.

"In many ways, the economy has just not worked out the way I expected it," states Basu. "There is lots of volatility out there." Initially referencing the fluctuation in the stock market, worker strikes, possible end to the war on Ukraine and the "pivotal" federal funds target range, he dives into how all those economic factors and more have affected the construction industry.

Reprinted courtesy of Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Citigroup Sees Homebuilders Beating the S&P 500 Over the Next Month

October 16, 2023
Norah Mulinda - Bloomberg

Citigroup Inc. analysts expect a strong performance from homebuilder stocks over the next 30 days, topping the S&P 500 Index in that stretch.

A gauge of the shares rebounded 0.7% Friday, a day after slumping 5.2%, the most in a month, after hotter-than-forecast inflation data sent bond yields surging.

Citi analysts led by Anthony Pettinari say major single-day declines are historically attractive entry points for builders. Homebuilding stocks have only seen 55 instances of single-day declines of more than 5% since the global financial crisis, according to the firm.


Homebuilder Stocks Poised for Market-Beating Returns, Wall Street Says

October 9, 2023
Norah Mulinda - Bloomberg

This year’s rally in homebuilding stocks has outstripped even the AI-fueled tech boom, and if analysts are to be believed, that outperformance is set to continue.

Wall Street price targets show an expected return potential of 16% over the next 12 months for US homebuilders, ahead of the 13% seen for the broader market and the tech-heavy Nasdaq 100 Index. That’s on top of 2023’s 47% surge in builders’ stocks, which has already surpassed the Nasdaq’s 41% climb.


Small Multifamily Homes Were Disappearing. Now States Are Scrambling to Revive Them

October 2, 2023
Ilena Peng - Bloomberg

More small multifamily homes are needed to help solve America's housing crisis, but they make up an ever-shrinking share of new housing construction.

Housing construction in the US has long focused on single-family homes and large apartment buildings, leaving a deficit of everything in between—sometimes referred to as “middle housing” by housing experts and advocates. While the number of new apartment building units recently reached the highest point in nearly half a century, the construction of denser alternatives to single-family homes made up just 1% of new housing units built in 2022. Legislators and advocates are pushing for that to change, arguing that middle housing could lower costs and alleviate a national housing shortage.


US New-Home Sales Rise to Highest Level in Over a Year

September 25, 2023
Augusta Saraiva - Bloomberg

US new-home sales rose in July to the highest level in over a year as homebuilders continue to benefit from limited supply in the resale market.

Purchases of new single-family homes increased 4.4% to an annualized 714,000 pace after downward revisions to prior months, government data showed Wednesday. The median estimate in a Bloomberg survey of economists called for a 703,000 pace.



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Vision for New Affordable City in California Meets Skepticism from Locals

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A $30,000 mistake by a roofing company was a blessing for an Edmond, Oklahoma, couple. Deborah and Scott Senner were out of town and received a call from Graco Roofing & Constructions LLC, saying they’d accidentally taken their roof off instead of their neighbors, Inside Edition Digital’s Andrea Swindall reported.

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