The End of 2021 Saw Gains For Private Residential Spending

 

The National Association of Homebuilders' Census Construction Spending reported that the total private residential construction spending jumped 1.1% at the end of 2021. In December 2021 spending was at an adjusted annual rate of $810.3 billion with a total that was 15% higher than in December 2020.

Single-family construction spending rose to a $435 billion annual pace which was up 2.1%. Multi-family constructions spending rose 0.4% but was hurt a little due to supply chain issues. In fact, home building is still facing supply chain issues and labor shortages.

Private non-residential spending stayed the same towards the end of 2021. December saw a rise from November 2021 which was 9.1% high than a year ago. The largest month-over-month nonresidential spending increase was made by the class of office ($0.49 billion), followed by amusement and recreation ($0.4 billion), and class of lodging ($0.37 billion).

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New Housing Construction Is on the Rise Despite the Shortage of Materials

 The U.S. Census December 2021 Monthly New Residential Construction report revealed an increase in the number of housing starts in November. The rate was 12% over what October's report showed. This trend stems from the strong demand for housing.

“And there’s a lack of existing homes for sale. So where is the buyer to go but to the new-construction market? So that’s the good news,” Susan Wachter, professor of real estate at the Wharton School of the University of Pennsylvania said.

The Survey of Construction (SOC) is a report created by the U.S. Census Bureau and is released on a monthly rotation. The report shows the statistics on starts and completions of both new single-family and multifamily houses. The source of the data comes from survey questionnaires and is broken into two parts, the Survey Use of Permits (SUP and the Non-Permit Survey (NP).

Even with the shortage of building materials, new home contractors are still busy. According to builder Jerry Konter from Savannah, Georgia windows have had a 28-week delay. Housing contractors are finding a workaround for t
he shortage of workers and materials.

“Construction employment has been increasing in spite of all those help wanted signs, and materials are eventually getting delivered,” said economist Ken Simonson with the Associated General Contractors of America.

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Stucco and Vinyl Make the Top List for Exteriors on New Construction Homes

The Census Bureau released their Survey of Construction (SOC) and data shows that the most used exterior finished in 2020 for a new single-family home was stucco. The report revealed that 28% of new homes started in 2020 the principal exterior material was stucco, 26% used vinyl, 21% used Hardiplank or Hardiboard, 19% brick of veer brick, wood products 4% and rock or stone materials only 1%.

The Survey of Construction (SOC) is a great resource distributed by the United States Census Bureau. The purpose of the survey is to gather the data on the current statistics for both national and regional starts, completions and characteristics of new construction on single-family and multifamily housing units. The report also includes sales of new single-family houses.

Along the different regions in the county, there were big differences in what was mainly used on the exteriors of homes in certain regions. Vinyl siding was used most in 5 out of the 9 census divisions. The report shows that in Middle Atlantic and New England vinyl was used as the primary exterior on 76% of new homes started in 2020, in the East 68%, West North Central 53%, and in East South Central 45%. Stucco won out in the Pacific division with 63%, Mountain came in with 50% and South Atlantic used the material on 39% of new single-family homes started in 2020. Brick or brick veneer was used the most in South Central with 64% and the East with 39%.

If you are in the market for a home, now is a great time to buy. The historically low-interest rates are in the buyer's favor. Remember if you are considering purchasing a home, use a licensed sales agent who can help you through the process.

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March 2021 Sees Gains for Private Residential Spending According to the National Association of Home Builders

 

The NAHB analysis of Census Construction Spending data revealed that March 2021 saw an increase of total private residential construction spending by 1.7% to a seasonally adjusted annual rate of $725.3 billion. This is 23.3% higher than reported this time in 2020.

Along with the pandemic’s stay-at-home orders, homeowners put remodeling and improvements on the forefront. The gains seen in March were mostly attributed to a large amount of spending on single-family and improvements. Single-family construction spending rose to a $389.9 billion annual pace in March, up by 2%. The report also showed a 2% increase in single-family home remodeling.

This spending increase runs along with the single-family housing starts which also jumped in March. According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, overall housing starts increased 19.4% percent to a seasonally adjusted annual rate of 1.74 million units. They have not seen such a fast pace since June 2006.

Housing starts are also on the rise with 636,000 single-family homes currently under construction which is 19% higher than this time last year. NAHB reported that combined housing in the Midwest 28%, the Northeast 23%, in the South 10% and 5% in the West. Permits were higher in the Midwest and South, lower in the Northeast and the same in the West.

Now is a good time to purchase a new home. If you are in the market for a home, go through a local sales agent who knows the market in your area.

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