Building the Future of the Lowcountry
Low Inventory, Solid Demand Boost July New Home Sales
Charleston HBA
Low existing inventory and solid demand more than offset rising mortgage rates and elevated construction costs to boost new home sales in July. Sales of newly built, single-family homes in July increased 4.4% to a 714,000 seasonally adjusted annual rate from a downwardly revised reading in June, according to newly released data by HUD and the U.S. Census Bureau. The pace of new home sales in July was up 31.5% from a year ago. In addition to adjusting for seasonal effects, the July reading of 714,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in July was 437,000, up 4.8% compared to a year ago. This represents a 7.3 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. Of the total home inventory, including both new and resale homes, 31% of homes available for sale are newly built. The median new home sale price in July was $436,700, down roughly 9% compared to a year ago. Pricing is down both due to builder incentive use and a shift towards building slightly smaller homes. Regionally, on a year-to-date basis, new home sales are up 5.0% in the Northeast, 1.0% in the Midwest and 3.5% in the South. New home sales are down 8.1% in the affordability-challenged West.
NEW MEMBERS Alchemy Elevator Andersen Windows & Doors Brookfield Residential Coastal Equity Group HIC Land Development Hubbell Inc. KMG Design Studio Lansing Building Products UPCOMING EVENTS & EDU Builder/Inspector Sept. 13 | 8:30AM N. Chs. City Hall Nibblers & Networking Sept. 14 | 4:30PM Charleston Lighting & Interiors
IN THE NEWS
September 2023
WOTUS Rule a Blow to Affordability The EPA and U.S. Army Corps of Engineers in late August issued a revised, final waters of the United States (WOTUS) rule under the federal Clean Water Act in the aftermath of the Supreme Court Sackett ruling. NAHB believes the amended WOTUS rule represents a blow to housing affordability. It assures continued uncertainty regarding federal jurisdiction as established by the Supreme Court’s recent Sackett decision that made clear the federal government only has authority over relatively permanent waterbodies.
NAHB Warns Against Rent Control NAHB and 17 other associations representing housing providers, lenders and residents sent a letter to the Federal Housing Finance Agency (FHFA) warning that mandatory rent control and rent stabilization policies will increase rents, reduce the capital needed to boost the supply of housing, and ultimately hurt current and future renters. Research has proven that mandatory rent control is a failed policy that does nothing to alleviate the root causes of housing affordability challenges.
Registration Now Open
For 2024 Builders’ Show The NAHB International Builders’ Show® (IBS) returns to Las Vegas on Feb. 27-29, 2024, with exciting new features to enhance your experience, provide more learning opportunities and ensure that industry professionals get the maximum value for their time. Among the innovations in 2024, the exhibit floor will be segmented into six categories and the Outdoor Exhibits to allow attendees to streamline their visit based on specific interests, product categories and thematic zones. Registration is now open at buildersshow.com. DOL Issues Final Rule 
On Prevailing Wages
The U.S. Department of Labor (DOL) has published a final rule updating the Davis-Bacon and Related Acts (DBRA) regulations regarding the calculation of prevailing wages in local areas. The new rule goes into effect Oct. 23. In the home building industry, the final rule primarily affects multifamily builders who participate in certain HUD and Federal Housing Administration (FHA) Multifamily Mortgage Insurance programs.
G7 Includes Language on Housing Housing ministers and other leaders from the Group of Seven (G7) countries met in Japan in July to discuss a common framework and principles for urban development and rural housing. They concluded the meetings with recommendations regarding housing affordability, which included language to address housing costs using private sector investment aimed at lower- and middle-income households. NAHB and the International Housing Association (IHA) had worked in advance of the meetings to include principles for housing affordability in the agenda, which focused mainly on community resilience and green building.
Multifamily Sentiment Positive Confidence in the market for new multi- family housing was in positive territory for the second quarter, according to results from the Multifamily Market Survey (MMS) released today by the National Association of Home Builders (NAHB). The MMS produces two separate indices. The Multifamily Production Index (MPI) had a reading of 56 for Q2 while the Multifamily Occupancy Index (MOI) reading was 89. The MPI measures builder and developer sentiment about current production conditions in the apartment and condo market on a scale of 0 to 100. The index is scaled so a number above 50 indicates that more respondents report conditions are good than report conditions are poor.
A Quick Look at NAHB’s Builder Members
NAHB’s annual membership census reveals important characteristics of its membership base, including both Builder and Associate members. The latest survey reflects the business activity of members in 2022. The report on Builder members includes those whose primary business is single-family home building, multifamily building, residential or commercial remodeling, commercial building, land development, or manufacturing of modular/panelized/log homes. Builder members comprise 35% of NAHB’s overall membership base. The median number of employees for Builder member companies was five, which has remained consistent since 2015. Those companies started a median of six housing units in 2022, which remained unchanged from 2021. The median dollar volume of business among Builder members was $3.3 million in 2022, also unchanged from 2021. This is the second consecutive year where the median dollar volume of business is above $3 million.
Falls continue to be the leading cause of accidents and injuries in home building 
and construction at large. OSHA issued more than 5,100 citations to businesses that provided inadequate fall protection systems for workers, resulting in more 
than $34 million in penalties in 2022 alone. NAHB and its partners have developed materials and resources to help busi-
nesses comply with federal fall protection regulations and implement safe work practices to prevent fall-related injuries and deaths. These resources can be used on the jobsite as quick, easy-to-understand guidance or can give workers an in-depth look at best practices in fall protection. NAHB’s safety sponsor, Builders Mutual Insurance Company, has partnered with several organizations for its Put Your Guard Up safety initiative. The campaign features training materials to help employers practice guardrail safety on jobsites and includes a training guide, toolbox talk and inspection checklist. NAHB has also partnered with the Job-Site Safety Institute for its online Fall Preven- tion in Residential Construction training course, which covers recognizing common fall hazards, identifying when fall protec- tion is required, understanding the safety requirements for typical jobsite equipment such as ladders and scaffolding, and more.
Protect Workers with Fall Prevention Resources from NAHB
Wade Green
President Jay Piner Vice President Robby Arnold
Secretary Peter Loy
Treasurer Brett Miller Past President Board Members Joanie Allen Joshua Balamuta Cassie Cataline Tricia Haggerty Ward Mungo Trae Redmond Hunter Spivey Taylor Stair Ted Terry Bradley Webster For a full list of life board members, click here
Builder/Inspector Sept. 13 | 8:30AM N. Chs. City Hall Nibblers & Networking Sept. 14 | 4:30PM Charleston Lighting & Interiors HBA of SC State Convention Oct. 6-8 Renaissance Asheville Downtown Hotel Legislative Oyster Roast Oct. 10 | 4:30pm - 6:30pm Four Corners Building Supply SMC New Homes Bus Tour Oct. 19 | 8:30AM *Bus leaves CHBA Office at 9AM* For a full list of events from now until the end of the year, click here
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