Residential construction is increasingly moving to suburban and outlying areas due to rising building costs, land scarcity, and worker shortages, according to a new NAHB report.
A new survey reveals Canadians are investing heavily in home renovations, with average project costs nearly doubling to $19,000 compared to 2019. The findings suggest that while Canadians are making substantial investments in their homes, they're doing so with careful financial planning and a growing emphasis on sustainable solutions.
The National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI) found that in the third quarter of 2024, a family earning the nation’s median income of $97,800 needed 38% of its income to cover the mortgage payment on a median-priced new home.
October housing starts fell to 1.31 million units annually, with single-family starts down 6.9% but up 9.3% year-to-date. Despite rising mortgage rates, builders remain positive about 2025's outlook, anticipating regulatory improvements and Federal Reserve interest rate cuts to boost construction activity.
Builder confidence increased to 46 in November, marking the third consecutive monthly gain. While optimism grows over potential Republican regulatory relief, challenges persist, including labor shortages, lot availability, and elevated material prices. Price cuts remained steady at 31% of builders, with average reductions of 5%.
Approximately 90% of metro markets (196 out of 226, or 87%) registered home price gains in the third quarter of 2024, as the 30-year fixed mortgage rate ranged from 6.08% to 6.95%, according to the National Association of Realtors’ latest quarterly report.
Confidence in the market for new multifamily housing showed mixed results year-over-year in the third quarter, according to results from the Multifamily Market Survey (MMS) by the National Association of Home Builders (NAHB).
Despite a slowdown in Q3 2024 construction sector activity, home renovation professionals express optimism for Q4, according to Houzz's latest Renovation Barometer.
With the Federal Reserve beginning an easing of monetary policy and builder sentiment improving, single-family starts posted a modest gain in September while multifamily construction continued to weaken because of tight financing and an ongoing rise in completed apartments.
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