This NAHB newsletter is brought to you by the Vermont Builders and Remodelers Association
January 2022
Home Builder Sentiment Strong as 2021 Comes to a Close
Despite inflation concerns and ongoing production bottlenecks, home builder confidence edged higher for the fourth consecutive month on strong consumer demand and limited existing inventory. Builder sentiment in the market for newly built single-family homes moved one point higher to 84 in December, according to the NAHB/Wells Fargo Housing Market Index (HMI) released in December. This ties the highest reading of the year that was posted in February. Derived from a monthly survey that NAHB has been conducting for 35 years, the NAHB/Wells Fargo HMI gauges builder perceptions of current single-family home sales and sales expectations for the next six months as “good,” “fair” or “poor.” The survey also asks builders to rate traffic of prospec- tive buyers as “high to very high,” “average” or “low to very low.” Scores for each component are then used to calculate a seasonally adjusted index where any number over 50 indicates that more builders view conditions as good than poor. The HMI index gauging current sales conditions rose one point to 90 and the gauge charting traffic of prospective buyers also posted a one-point gain to 70. The component measuring sales expect- ations in the next six months held steady for the third consecutive month at 84. HMI tables can be found at nahb.org/hmi.
Fed Tightening May Bring Higher Rates The Federal Reserve on Dec. 15 signaled that it will be shifting from an accommodative monetary policy stance that has supported the economic rebound from the 2020 recession toward a tighter policy as a direct result of ongoing, elevated inflation data. This policy pivot means that mortgage interest rates are likely to rise in 2022. This will reduce housing affordability and again emphasizes the need for policymakers to fix the nation’s supply chains that are impeding more robust housing construction.
Take Advantage of IBS Pre-Show Education The NAHB International Builders’ Show® (IBS) provides access to critical professional development opportunities through education sessions and workshops. Attendees can get a head start on these educational tools through pre-show education. Ten NAHB Education courses and five Master Workshops are available on Sunday, Feb. 6, and Monday, Feb. 7. Participants may register for NAHB Education courses and Master Workshops for an additional fee. Register today. Sandra L. Thompson Nominated to Head FHFA President Biden in December nominated Sandra L. Thompson as the new director of the Federal Housing Finance Agency (FHFA). Thompson currently serves as acting director of the FHFA. She replaced Mark Calabria in June after the U.S. Supreme Court ruled that the FHFA director can be removed at will. Thompson previously served as deputy director of FHFA’s Division of Housing Mission and Goals since 2013. Prior to joining FHFA, Thompson worked at the Federal Deposit Insurance Corporation for 23 years in a variety of leadership positions.
EPA Publishes Proposed WOTUS Rule The Federal Register in December published a proposed rule by the EPA and the U.S. Army Corps of Engineers to rescind the definition of “waters of the United States” (WOTUS) as finalized during the Trump administration. If finalized as proposed, the new rule will rescind the WOTUS definition NAHB supported under the Navigable Waters Protection Rule (NWPR) and replace it with a new WOTUS definition that includes elements of the 1986 definition and elements of the Supreme Court’s 2006 Rapanos decision.
Congress Pushes Commerce on Lumber At the behest of NAHB, 84 members of Congress sent a joint letter to Commerce Secretary Gina Raimondo expressing urgent concern regarding the Commerce Department’s recent decision to double tariffs on softwood lumber products from Canada. The letter highlights the critical need for the United States and Canada to renew negotiations in an effort to come to an equitable solution that will satisfy all sides, including domestic industries and consumers, that need a reliable supply of softwood lumber.
NHE Offering Grants to Support Workforce Development
NAHB Provides Safety Videos Working in construction can be dangerous. Workers can be exposed to hazards such as falls, electrical shock, and harmful chemicals. Before your employees step on the jobsite, be sure they understand how to protect themselves while at work. NAHB has published a new safety video toolbox talk, Safety Basics, to help home builders familiarize their staff with the hazards of a residential construction site. While construction work can be inherently dangerous, understanding hazards and creating a safety plan to address them will help keep everyone safe on the jobsite. Visit NAHB's video toolbox page for a Spanish version of the safety basics video.
The National Housing Endowment (NHE) has set a bold goal for 2022 – to introduce 10,000 young people to career oppor- tunities in the residential skilled trades. NHE encourages state and local home builders assoc- iations to apply for the Career Connections grant program. The program is funded by the Skilled Labor Fund (SLF) and managed by NHE. The funding is designed to support career fairs, presentations, participation in school- organized career events, and other activ- ities that introduce students to careers in residential skilled trades. The fund will award grants up to $2,500. A committee will consider each application and will award funds based upon merit and funding availability. Applications are due Feb. 16, 2022, for career events taking place by Nov. 18, 2022. Grant recipients will be announced in March. Contact Mark Pursell, NHE President and CEO, with any questions.
DHS Expands H-2B Visas The Department of Homeland Security (DHS) has announced the forthcoming publication of a joint temporary final rule making available an additional 20,000 H-2B temporary nonagricultural worker visas for fiscal year (FY) 2022. These additional visas will be set aside for U.S. employers seeking to employ additional workers on or before March 31, 2022. H-2B visas allow employers to hire foreign workers who come temporarily to the United States and perform temporary non-agricultural services or labor – including construction work – on a one-time, seasonal, peak-load or intermittent basis. Eligibility and filing requirements can be found on the H-2B Nonimmigrants webpage.
The NAHB/NAR Home Performance Counts: Virtual Green Home Tour Series continues on Thursday, Jan. 20 at 3 p.m. ET with a full home remodel in the Fort Worth, Texas area. Greening the existing housing stock is critical to reducing the environmental footprint of residential construction. Check out the high-performance remodeling journey of a mid-century modern home in North Texas with Heather Ferrier Laminack of Ferrier Custom Homes. See the process, from demo to finished product on how the home was updated to be efficient, healthy and comfortable while maintaining its mid-century character. Learn about the challenges and rewards of a green update to an existing home and how to realize the added value of those updates in the real estate market. A live Q&A will take place immediately after the tour with Laminack and Mike Garza, Global Real Estate Advisor, Briggs Freeman Sotheby's International Realty, Fort Worth, Texas. These free 45-minute programs are planned quarterly for 2022. Register at nahb.org/greentour. Can’t make it on January 20? Registrants can also access the replay for this event and others in the series through NAHB's webinar replay library. The series is a product of Home Performance Counts, a joint educational initiative between NAHB and the National Association of Realtors (NAR). Home Performance Counts is designed to help members of both associations work together and succeed in the rapidly growing marketplace for high-performance homes.
Green Tour Series Looks at Mid-Century Modern in Texas