Sluggish Movement on Housing Starts

May 16, 2017

The housing markets in 21 of the nation’s largest 35 metros have more than recovered from the 2008 economic meltdown, according to a new data analysis from Zillow

Single-family housing starts in April were at a rate of 835,000, which is 0.4 percent above the revised March figure of 832,000, according to data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Privately-owned housing starts in April were at a seasonally adjusted annual rate of 1,172,000, which is 2.6 percent below the revised March estimate of 1,203,000 but is 0.7 percent higher than the April 2016 rate of 1,164,000.

Single-family authorizations in April were at a rate of 789,000, which is 4.5 percent below the revised March figure of 826,000. Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,229,000, which is 2.5 percent below the revised March rate of 1,260,000, but is 5.7 percent above the April 2016 rate of 1,163,000.

Lawrence Yun, chief economist at the National Association of Realtors (NAR), expressed concern that April’s data will reflect poorly on long-term planning.

“With housing starts declining in April, inventory shortages will continue for a longer period of time,” Yun said. “The intensifying housing shortage will push up home prices and rents, and easily above wage growth and the broad consumer price inflation. This continued, slow pace of construction of new homes is a major bottleneck to a faster economic and housing recovery.”

About the author

Phil Hall

Link copied

Published

May 16, 2017

FHA

FHA To Lay Off 40% Of Workforce

Mass terminations across the federal government expected to hit federal mortgage insurer

The Federal Housing Administration (FHA) is preparing to lay off 40% of its workforce, as first reported by Bloomberg News, citing “two sources familiar with the agency’s plan.” Secretary of the U.S. Department of Housing and Urban Development (HUD), Scott Turner, announc...

Analysis and Data

Housing Market Swings Toward Cheaper Rentals

Homeownership may be a harder sell as rents soften across the nation

Once upon a time, it was January 2024, and there were six major metro areas in the U.S. where it was cheaper to buy the median-priced home than it was to rent. As of last month, only two of those six remain — meaning mortgage originators may be finding it more of an uphil...