NAHB: 2017 Production Woes Will Continue in 2018

NAHB: 2017 Production Woes Will Continue in 2018

January 12, 2018
Total U.S. construction starts for 2019 will be $808 billion, according to a forecast published in Dodge Data & Analytics’ 2019 Dodge Construction Outlook
The problems that impacted home production in 2017—specifically, the shortage of affordable, buildable lots and the scarcity of labor affected home production—will continue into 2018, according to a survey from the National Association of Home Builders (NAHB).
In a poll conducted during this week’s NAHB International Builders’ Show in Orlando, 65 percent of those surveyed believed last year’s problems will not “get any easier in 2018.” The survey determined that 79 percent of these prospective buyers can only afford half the homes in their markets, and 53 percent of respondents—mostly Millennials and Gen Xers—said they would even consider purchasing a tiny home of 600-square-feet or less in size at some point, just to gain a foothold in homeownership.
“These potential buyers see a problem with housing availability,” said Rose Quint, Assistant Vice President of Survey Research for NAHB. “They know it’s a tough nut to crack, but they are not deterred. They are still planning to buy a house in the next 12 months.”
As for the homes being produced, the NAHB said the average home size was 2,627 square feet in 2017, roughly the same as in 2016. Forty-six percent had four bedrooms or more compared to 45 percent in 2016, while 37 percent had three full baths or more compared to 35 percent in 2016.