In another indicator that housing continues to lead the economy forward, sales of newly built, single-family homes in August topped the 1 million mark and reached their highest pace since September 2006.
Sales increased 4.8% to a seasonally adjusted annual rate of 1.01 million units, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau.
The August rate is 43.2% higher than the August 2019 pace.
“Surging sales are consistent with record builder confidence levels stemming from higher buyer traffic, historically low interest rates and a shift in demand for lower density markets,” said NAHB Chairman Chuck Fowke. “However, higher lumber costs and limited building material availability in some markets signify we could see higher prices down the road.”
New THIS Month
J.M. Smart Renovations
EVENTS & EDU
Treated Wood 101 Oct 7th | 9:00AM CHBA Office
Oyster Roast Oct 22nd | 4:30PM Kiawah River
Holiday OR Headshot Photos Nov 3rd-5th | 9AM-4PM Riverfront Park
Breakfast with the Builder Nov 10th | 8:30AM North Chs. Coliseum
O C T O B E R 2020
IN THE NEWS
New Home Sales at Highest Pace Since September 2006
Building the Future of the Lowcountry
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“New home sales are now 15% higher on a year-to-date basis, with gains in all regions,” said NAHB Chief Economist Robert Dietz. “But with inventory at just a 3.3 months’ supply, more construction is needed. The challenge will be whether materials and labor are available.”
That 3.3 month's supply means just 282,000 new single-family homes are for sale, 40% lower than August 2019. The current months’ supply is the lowest in the history of the data series, which goes back to 1963. Of the inventory total, just 54,000 are completed and ready to occupy.
Register at hbacharleston.com
New Home Sales at Highest Pace Since September 2006
THURSDAY, OCTOBER 22ND
4:30PM - 6:30PM | KIAWAH RIVER
Presented by Sherwin Williams
All You Can Eat Oysters: Clark's Termite & Pest Control
Food Truck: American Express | Open Bar: Cambria
Oyster Knives: Certainty Home Loans | Table Tops: Stanley Martin
Members: $25 entry fee or a $20 PAC Contribution
IBS Registration is Now Open
Registration is open for the 2021 NAHB International Builders’ Show® (IBS), the premier event in the resident- ial construction industry. The in-person show will follow all safety protocols set forth by the CDC and federal, state and local government agencies.
IBS will move back to the Orange County Convention Center in Orlando, Feb. 9-11, where it will again co-locate with the National Kitchen & Bath Association’s Kitchen & Bath Industry Show® (KBIS).
Apartment Absorption Rate Falls to 45%
The absorption rate of unfurnished, unsubsidized apartments (the share rented out in the first three months following completion) fell to 45% in the first quarter of 2020 (from 53% in the first quarter of 2019), according to data from the U.S. Census Bureau’s Survey of Market Absorption. This is the lowest absorption rate for the first quarter since 1986.
HUD Secretary Carson Speaks with NAHB
HUD Secretary Ben Carson on Sept. 24 participated in an exclusive webinar that more than 1,000 members and invited guests registered to attend. He discussed the need to address the lumber crisis as well as HUD’s actions to address housing needs in response to COVID-19.
Carson told the NAHB members that lumber prices are “a big roadblock” and that he would seek to “elevate” this issue by engaging with other top administration officials.
little to boost energy efficiency in the housing sector.
NAHB ran a strong grassroots campaign asking members to reach out to their congressional members and urge them to oppose the legislation.
Over the past two years, NAHB has also met with the White House to discuss concerns about the building code language. NAHB's leadership was pleased to see that the administration shares the association's concerns.
The full Statement of Administration Policy can be viewed on the White House's website.
The White House recently joined NAHB in opposing House energy bill H.R. 4447 due in part to problematic language regarding building codes that would harm housing affordability.
NAHB has come out in strong opposition to the legislation because it would needlessly raise home construction costs while doing
White House Joins NAHB in Opposing House Energy Bill
The U.S. Centers for Disease Control and Prevention (CDC) has issued a nationwide order that will halt millions of U.S. renters from being evicted through Dec. 31, 2020. The CDC said halting residential evic- tions of any covered tenants for failure to pay rent is necessary to prevent the further spread of COVID-19.
NAHB is deeply concerned the CDC’s rental eviction moratorium through the end of the year will result in negative economic consequences
Sponsor of the 2020 High Performance Council Meetings
CDC Imposes Eviction Moratorium
ICC Board Agrees with NAHB on Appeal
The ICC Board of Directors on Sept. 23 agreed with NAHB’s appeal related to a proposed change to the International Energy Conservation Code (IECC) that dealt with the efficiency of water heaters. NAHB and others argued, and ICC agreed, that the changes would have preempted federal law or would have exposed adopting jurisdictions to potential litigation related to the proposed requirements.
The ICC Board decided to reject RE126-19 (and RE107-19) on the basis that “potentially preempted provisions in the I-Codes are inconsistent with the spirit, intent and mission of the Code Council.”
without dedicated funding for rental assistance.
The EPA has finalized a rulemaking that establishes regulatory standards for all EPA regulatory guidance documents. EPA’s final rule, intended to increase transpar- ency and access, has four key elements:
Establishes a regulatory definition for the “guidance documents” and “significant guidance documents” that are subject to the rule’s requirements.
Responds to President Trump’s directive under Executive Order 13891, “Promoting the Rule of Law Through Improved Agency Guidance Documents.”
Requires “significant regulatory guidance documents” to be subject to public com- ment before being finalized by the Agency.
Creates a process by which anyone can petition the agency to modify or withdraw any existing regulatory guidance document.
EPA Finalizes Reg Guidance
Video Highlights 2020 National Green Building Standard
With so many green rating systems available, understanding how each one compares to the others is imperative for making a choice that works best for your project, climate zone and market. The recent release of the 2020 National Green Building Standard™ (NGBS) provides a great opportunity to conduct a side-by side comparison, starting with energy performance — an easy element to measure.
Buyers also can relate to energy perform- ance without difficulty; they desire energy efficiency, whether it’s the numbers they see on their electric bill or the familiar ENERGY STAR label.
NAHB has produced a two-minute video highlighting the strengths of the 2020 NGBS that members can share on social media.
For a full list of life board members, visit our website hbacharleston.com
TREATED WOOD 101 ZOOM Event Oct. 7th, 9:00AM
OYSTER ROAST Kiawah River Oct. 22nd, 4:30PM
HOLIDAY/HEADSHOT PHOTOS Riverfront Park Nov. 3rd -5th, 9AM - 4PM
BREAKFAST WITH THE BUILDER North Charleston Coliseum Nov. 10th, 8:30AM
HEALTHCARE 101 CHBA Office Nov. 12th, 9:00AM
HUNTSMAN'S FEAST Founders Hall Nov. 12th, 6PM - 9PM
CERTIFIED NEW HOME SALES PROFESSIONAL COURSE CHBA Office Nov. 16th - 18th
If you have any questions, contact Ashley at email@example.com
President Trump Signs USMCA Trade Pact
In a positive development for the housing industry, President Trump on Jan. 29 signed the U.S.-Mexico- Canada Agreement (USMCA).
The U.S. residential construction and remodeling industries rely on tens of billions of dollars in building materials sourced from Mexico and Canada each year. By modernizing and strengthening free trade with our largest trade partners, the USMCA will boost U.S. economic growth and help keep the price of homes and home improvements low.
New App Offers Accessibility Guidance
NAHB unveiled the "Pocket Guide to the Fair Housing Act," a free app to help home builders, contractors and designers meet the accessibility requirements of the act, during the Builders' Show in Las Vegas.
“HUD welcomes the efforts of this important housing industry partner in working to meet the needs of persons with disabilities,” HUD Secretary Ben Carson told NAHB's Leadership Council.
EPA Announces Water Rule at IBS
EPA Administrator Andrew Wheeler announced a final “waters of the United States” (WOTUS) rule during the International Builders’ Show in Las Vegas.
“The Navigable Waters Protection Rule is a big win for states, municipalities, builders and developers, landowners and the American public,” Wheeler said in remarks to NAHB’s Leadership Council. “It will make it easier to understand where the Clean Water Act applies and, as importantly, where it does not.”
The EPA administrator noted the new water rule is good for the economy and the environment.
To better serve the needs of its members, industry partners and other key stakeholders, NAHB recently unveiled an all-new nahb.org website.
The site not only features a much more modern look, but also greatly improved search performance, enhanced content functionality and improved navigation for a better user experience.
Joint Employer Rule
In a win for NAHB, the Labor Department in January announced a final rule to provide a clearer method for determining joint employer status.
The rule will provide clarity and certainty regarding employers' responsibility to pay federal minimum wage and overtime for all hours worked over 40 in a week.
The new rule will take effect March 16. It includes a set of joint employment examples to further assist in clarifying joint employer status.