Skip to main content

Home Building Speed Varies Widely Among Regions

Phil Hall
Aug 18, 2015
Home Construction Pic

The problems with inventory—or, to be more specific, the lack thereof—has been an ongoing problem in the housing market. A new analysis of U.S. Census Bureau data by the National Association of Home Builders (NAHB) has concluded that attempts to address this issue have been faster in some markets and not so fast in others.

The NAHB, citing the Census Bureau’s 2014 Survey of Construction, reported that the average completion time of a single-family house is approximately seven months, which usually includes around 25 days from authorization to start and another six months to the completion of the construction. But this average has inconsistent extremes: the Mountain division, for example, had an average six-month period permit to completion, while the Mid-Atlantic Division averaged a 9.5 month period. The Mountain Division also had the speediest average from permit to the start of construction at 15 days, while the Pacific Division had the longest with a 31-day average.

Furthermore, houses in metropolitan areas took an average of nearly seven months to completion, which was two months shorter than those in non-metropolitan areas. The exception to this pattern was in the Mid-Atlantic, where the average completion period in metropolitan areas were longer.

But despite the length required for construction, builders remained confident on the market for the market for newly built, single-family homes: The NAHB/Wells Fargo Housing Market Index for August rose one point to a level of 61, the highest reading since November 2005. But NAHB Chairman Tom Woods warned that confidence is not synonymous with complete satisfaction with the state of the industry.

“The fact the builder confidence has been in the low 60s for three straight months shows that single-family housing is making slow but steady progress,” said Woods, a home builder from Blue Springs, Mo. “However, we continue to hear that builders face difficulties accessing land and labor.”

Biden Appoints Sandra Thompson As Acting Director Of The FHFA

The White House appointed Sandra L. Thompson as acting director of the Federal Housing Finance Agency (FHFA), effective immediately. Her statement reveals that a permanent director will be confirmed in December.

Regulation and Compliance
Jun 24, 2021
Supreme Court Gives Biden Full Control Over FHFA

The U.S. Supreme Court gave President Joe Biden the authority to remove the head of the Federal Housing Finance Agency (FHFA) while dismissing claims from shareholders of Fannie Mae and Freddie Mac.

Industry News
Jun 23, 2021
Ocwen Financial To Acquire Reverse Mortgage Servicing Platform

Ocwen Financial Corporation's wholly-owned subsidiary, PHH Mortgage Corporation will acquire RMS' reverse mortgage servicing platform.

Industry News
Jun 18, 2021
UniteCT Emergency Rental Assistance Succeeds

Thanks to the successful launch of the UniteCT program, emergency rental assistance funds are helping Connecticut residents maintain housing.

Industry News
Jun 17, 2021
Angel Oak Mortgage Announces Initial Public Offering

Angel Oak Mortgage announced its initial public offering of 7,200,000 shares of its common stock at $19 per share.

Industry News
Jun 17, 2021
Mortgage Apps Rebound After Three Consecutive Weeks Of Declines

The Mortgage Bankers Association reported the first increase in mortgage applications after a three consecutive weeks on declines.

Industry News
Jun 17, 2021