April 2022
Higher Mortgage Rates Dampen New Home Sales
Higher mortgage rates and construction costs pushed new home sales lower in February even as demand remains solid due to a lack of existing home inventory. Sales of newly built, single-family homes in February fell 2.0% to a 772,000 seasonally adjusted annual rate from a downwardly revised reading in January, according to the most recent data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales are down 6.2% compared to February 2021. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the February reading of 772,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory was up 33% over last year, rising to a 6.3 months’ supply, with 407,000 available for sale. However, just 35,000 of those are completed and ready to occupy. The median sales price rose to $400,600 in February, and is up 10.6% compared to a year ago even as residential construction material costs are up 20% over the same period. Regionally, compared to the previous month, new home sales increased 59.3% in the Northeast, increased 6.3% in the Midwest, decreased 1.7% in the South and decreased 13.0% in the West.
FEMA Begins New Flood Insurance Rates The second phase of the transition to the Federal Emergency Management Agency’s (FEMA) Risk Rating 2.0 began on April 1, when home owners who currently have flood insurance will begin to see the revised rates as their policies are renewed. FEMA is transforming the way it calculates premiums for flood insurance policies made available under the National Flood Insurance Program (NFIP) so that they better reflect the actual risks properties face.
Fed Raises Rates During March Meeting As widely expected by forecasters and markets, the Federal Reserve raised the federal funds rate by 25 basis points at the conclusion of its March meeting. The Fed also indicated that balance sheet reduction, after significant asset purchases to produce lower long-term rates, will begin at a future meeting. These monetary policy moves will lead to higher mortgage rates in 2022 and 2023 as the Fed attempts to curb elevated inflation. The Fed also reduced its GDP forecast in 2022 to just 2.8%. Millions Cannot Afford Dream of Homeownership Rising home prices and interest rates can negatively affect housing affordability, as shown in recent NAHB reports related to its 2022 Priced-Out Estimates. However, a large portion of the roughly 69% of U.S. households that can’t afford a new median-priced home aren’t even able to afford a home that costs a fraction of that price. The minimum income required to purchase a $150,000 home is $36,074. Roughly 36 million U.S. households are estimated to have incomes at or below that threshold.
NAHB Urges Action on Lumber Supply NAHB Chairman Jerry Konter urged the Biden administration to increase domestic production of timber from federal lands and to work with Canada on a new softwood lumber agreement that will elim- inate tariffs during a March 14 White House virtual meeting on resolving the lumber and building mate- rial supply chain crisis. And after the administration announced on March 23 that it would be ending tariffs on steel and aluminum from the United Kingdom, NAHB asked the White House to negotiate a similar agreement on Canadian softwood lumber.
Get Your Building Codes Pocket Guide The 2021 Home Builders’ Jobsite Codes guide is now available for purchase on BuilderBooks.com. The quick guide to the 2021 International Residential Code (IRC) covers the impact of 2021 IRC changes to fire resistance provisions, emergency escape and rescue openings, safety glazing adjacent to bathtubs and showers, and much more. The 2021 Home Builders’ Jobsite Codes guide covers construction and remodeling of single-family dwellings, duplexes and townhomes.
Top 10 Features Desired by First-Time Home Buyers
Tuskegee University Wins at IBS The 2022 NAHB Student Competition enjoyed a return to normal as the teams largely presented in person during the International Builders’ Show in Orlando. In the Production Home Builder competi- tion for four-year programs, teams were asked to create a development plan for a 120-acre parcel in Texas. Tuskegee University won first place for four-year programs. This marks the first time a team from a historically black college or university won the competition. California Polytechnic State University, San Luis Obispo took first place in the new Custom Home Builder competition. Kirkwood Community College in Iowa took the top spot in the competition for associate degree programs.
2022 NAHB Chairman Jerry Konter
NAHB's most recent survey of "What Home Buyers Really Want" asked first-time buyers to rate more than 200 home and commun- ity features using a four-tier scale: essential, desirable, indifferent and do not want. The top 10 most wanted features by first-time home buyers were: laundry room, ceiling fan, exterior lighting, double kitchen sink, hardwood flooring, walk-in pantry, drinking water filtration, patio, security cameras, and space for a kitchen table. The biggest difference in features most wanted by first-time buyers and buyers in general is the absence of energy saving features on the first-time buyers’ top 10 list. Among buyers in general, ENERGY STAR rated windows are the #4 most wanted feature and ENERGY STAR rated appliances ranked #9. A front porch also made the top 10 list among buyers in general.
Top States for NGBS Certifications With nearly 350,000 homes certified to the National Green Building Standard (NGBS) since its launch in 2009, builders across the United States are continually adding to the pipeline of NGBS projects. Here’s a snapshot of the states that saw the most certification activity in 2021 for single-family and multifamily projects. The top 10 states in 2021 for single-family certifications under the NGBS: North Carolina, Virginia, Delaware, Florida, Texas, Indiana, Maryland, New York, Washington, and Missouri. The top 10 states for multifamily certifica- tions under the NGBS: Texas, Florida, North Carolina, Georgia, Maryland, Virginia, Colorado, Arizona, Tennessee, and Indiana.
Calendar of Events April 20 Board of Directors Meeting 5:30 HBA Office 20 Personnel Committee 6:30 HBA Office 27 General Membership Mtg. 6:00 Idle Creek Banquet Center May 3 Golf Committee Meeting 12:00 HBA Office 18 Board of Directors Meeting 5:30 HBA Office 20 Golf Outing 11:00 Idle Creek Golf Course 25 General Membership Meeting June 1 Corn hole Committee Meeting 12:00 HBA Office
Leadership List
President - Joe Hoopingarner Vice President - Hank Kidwell Secretary - Tami Kolodziej Treasurer - Brad Bush Assistant Treasurer - Wayne Gore 1st Year Directors Builder - Mark Howald Builder - Scott Mundell Associate - George Moody Associate - Bryan Myers 2nd Year Directors Builder - Joe Anderson Builder - Jared Grable Associate - Jeff Martin Associate - Carrie Smith State Director - Dan Browne State Director - Ryan Baker Alternate State Director - Mark Clinkenbeard Alternate State Director - Aaron Mackey National Director - Todd Newman National Director - Frank Hoxworth Alternate National Director - Kurt Jones Alternate National Director - Mitch Lankhaar
NAHB member benefits programs are offering more savings than ever before. Whether it’s on your next product shipment, car rental, office supply order or telecommunications upgrade, we have the solutions to help meet your business needs. Below are a few examples. Savings on Shipping We’re committed to helping you solve shipping challenges, save money and reduce stress. From small packages to freight pallets, members can take advantage of our partnerships with UPS® and YRC for convenient, dependable services that make sending and receiving packages easy and more affordable. Great Savings on Rental Cars You can save money while making your travel experience more comfortable and convenient through the NAHB/Avis and Budget car rental savings program. With the pay-now feature, members can save up to 35% off base rates, plus other offers, such as complimentary upgrades. Savings from Office Depot Whether in the front office or out on a jobsite, the NAHB/Office Depot savings program provides the supplies you need to keep your business going. From personal protective equipment (PPE) — such as face coverings, safety googles, ear plugs and hard hats — as well as a variety of cleaning supplies and other business essentials, Office Depot can make it easier to outfit your business with work essentials. Tech Solutions from RingCentral Imagine your team working seamlessly with all the resources they need to keep conversations moving at their fingertips. Imagine your clients, suppliers and subcontractors connecting with you effortlessly through crystal-clear voice and video calls. Get these features and more when you upgrade to RingCentral’s voice, video and team messaging system. Visit 1800members.com/nahb or call 800-MEMBERS (800-636-2377) weekdays from 8 a.m. to 5 p.m. ET, for more information.
NAHB Member Savings Can Help Your Business Thrive