Confidence in the market for new multifamily housing was in positive territory for the second quarter, according to results from the Multifamily Market Survey (MMS) released by the National Association of Home Builders (NAHB).
A lack of existing inventory and solid demand helped offset rising mortgage rates and push single-family production higher in July, even as builders continue to grapple with elevated construction and financing costs as well as a lack of skilled labor.
The Federal Reserve’s ongoing rate hikes and persistent inflation levels above historical norms have sparked fear of a potential recession among kitchen and bath professionals, but design firms in the kitchen and bath industry are experiencing a reduced average backlog of 2.6 months for projects.
Rising mortgage rates and high construction costs stemming from a dearth of construction workers, a lack of buildable lots and ongoing shortages of distribution transformers put a chill on builder sentiment in August.
Retail sales in the United States were up 0.7% month-over-month in July of 2023, marking a fourth consecutive rise, according to the Commerce Department.
U.S. construction spending increased in June and the prior month's data was revised higher, boosted by spending in both single-family and multifamily housing projects.
Builders are feeling cautiously optimistic about market conditions given low levels of existing home inventory and ongoing gradual improvements for supply chains.
More than 60% of homeowners say they plan to stay in their homes for 11 years or more following a 2022 renovation. Additionally, the share of homeowners undertaking renovations with a plan to sell their home soon has declined by half since 2018.
The National Association of Home Builders (NAHB) redesigned its Multifamily Market Survey (MMS) in the first quarter of 2023 to make it easier to interpret and more similar to the NAHB/Wells Fargo Housing Market Index for single-family housing.