Author: Brad Beckett

The U.S. government is reporting that privately‐owned housing starts in December were at a seasonally adjusted annual rate of 1,702,000, which is 1.4% higher than November’s revised number and 2.5% higher than one year ago.  December’s rate for units in buildings with five units or more was 524k.  Privately‐owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,873,000, which is 9.1% higher than November’s revised number.  Authorizations of units in buildings with five units or more were at a rate of 675k in December. Click here to read the full report at…

The Visual Capitalist says just 4 countries (the US, China, Japan, and Germany) make up over half of the world’s economic output by gross domestic product (GDP) in nominal terms. Interestingly they point out that the GDP of the U.S. alone is greater than the combined GDP of 170 countries.  Recall from economics class that the gross domestic product serves as a useful barometer for a country’s economic health.  Indeed…..Today’s graphic takes a look at how the economies of the world compare by GDP….all $94 trillion worth of them.   Stay safe and have a Happy Friday!!! “Generally speaking, when GDP…

According to United Van Lines 45th Annual National Movers Study, Americans were on the move to lower-density areas and to be closer to their families throughout 2021.  Interestingly, they found that many Gen Xers are retiring (often at a younger age than previous generations), joining the Baby Boomer generation.  That certainly makes you think…. “This new data from United Van Lines is indicative of COVID-19’s impact on domestic migration patterns, with 2021 bringing an acceleration of moves to smaller, midsized towns and cities,” Michael A. Stoll, economist and professor in the Department of Public Policy at the University of California,…

We recently posted about soaring lumber prices and their impact on the cost of a new home, not to mention many other segments of the industry that uses the input.  So what are some of the contributing factors?  A recent report from the NAHB’s Eye on Housing says that the failure of domestic sawmills to sufficiently boost output in the face of ongoing strong home buyer demand has been a primary factor in the recent record-high lumber prices and volatility in 2021. Indeed… “With a historically low level of overall housing inventory and solid demand due to low mortgage interest…

We’ve had many posts about the slow rollout of the government’s Emergency Rental Assistance Program.  A recent update from the U.S. Department of Treasury (reported by the Mortgage Bankers Association) says $10.4 billion of ERA1 funding and $18.7 billion of ERA2 funding remains unspent.  The MBA says that, through November 2021, ERA1’s cumulative expenditures were $14.6 billion, 58% of the total amount available, of which $13.6 billion has provided rent or utility assistance to households. They report that ERA2’s cumulative expenditures were $2.8 billion, 13% of the total amount available.  Currently the Treasury Department is working through a process to…

The venerable John Burns Real Estate Consulting recently shared their thoughts on what 2022 will bring to the rental and housing industry. They predict that new lease effective rents will continue to rise, with several popular in-migration markets producing double-digit rent growth over the last year, according to their Burns Single-Family Rent Index™ (BSFRI) – which covers 99 markets and includes homes that are owned by small investors, which are the vast majority of the market. Top SFR markets with double-digit new lease effective rent growth include: Phoenix (+12% YOY) Las Vegas (+10% YOY) Charlotte (+10% YOY) Atlanta (+10% YOY) Click here to read…

According to recent data from FreddieMac, interest rates have quickly risen to levels not seen since March, 2020.  Their research shows rates on types of loans have been rising with the 30-year fixed-rate mortgage increasing by almost a quarter of a percent from the prior week.  In addition, FreddieMac says the rise in mortgage rates so far has not yet affected purchase demand, but given the fast pace of home price growth, it will likely dampen demand them in the near future.  Be sure to look at their historical data. Click here to read the full story at FreddieMac.

The U.S. Bureau of Labor Statistics is reporting that the Consumer Price Index for All Urban Consumers (CPI-U) was 0.5% in December, 2021.  However, the all items index rose 7% for the 12 months ending December, the largest 12-month increase since 1982. Click here to read the full release at the Bureau of Labor Statistics.

Local Market Monitor, a National REIA preferred vendor, recently released their monthly National Economic Outlook where they share their thoughts on developments taking place in the U.S. economy. National Economic Outlook By Ingo Winzer January, 2022 The economy looks like it’s just about back to where we were before the pandemic hit, although with some big changes. The number of jobs in December was just a half percent lower than in February of 2020. That’s not much different from November, probably because the omicron variant has again affected many businesses, but it’s a good sign for 2022 that jobs have…

Recently reported moving data keeps showing an exodus from high-tax states to those with better climes.  Today’s graphic from the U.S. Census Bureau shows changes in population for all 50 U.S. states (and Puerto Rico) and it seems to be pretty consistent with the recent data.  Stay safe and have a Happy Friday!! Hat tip to the U.S. Census Bureau.