Housing Report: Declines in Three Categories Suggests Slowdown

BuildFax Housing Report: Declines in Three Categories Suggests Slowdown

Single-family authorizations, maintenance and remodeling trending down, according to BuildFax.

The BuildFax Housing Health Report for November found that the year-over-year rate of single-family housing authorizations, maintenance and remodeling have all decreased. This is the first time since 2011 that all three categories have decreased in the same month, pointing to a potential market slowdown on the horizon. The report, which leverages U.S. property condition and history data to deliver macroeconomic as well as more granular trends, also reveals that eight of the last 10 instances of blanket declines occurred during the recession and its recovery in 2008 and 2009.

Housing Supply by Volume

  • Single-family housing authorizations decreased by 0.86 percent year over year.
  • Maintenance volume decreased by 5.85 percent year over year.
  • Remodel volume decreased by 12 percent year over year.

“More so now than in years prior, the compounding effects of natural disasters, scarcity in the construction labor market and recent tariffs have impacted housing growth – not to mention systemic factors, like rising mortgage rates, that influence consumer behavior,” said BuildFax COO Jonathan Kanarek. “While it’s natural to see some leveling off after steep growth, the next few months will be telling; whether a downturn is on the horizon or the market is simply softening is yet to be seen.”

BuildFax

The report also looked at commercial construction, which shows decreases this month are in line with similar residential declines. However, commercial construction over the last five years has seen steady increases, primarily in construction spend. In fact, BuildFax data suggests there are disproportional increases between construction cost and volume, which point to a labor shortage in the market.

For a look at more trends affecting the U.S. housing market, access the full report here. To learn more about BuildFax, visit www.buildfax.com.

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After earning her bachelor’s degree in journalism at the University of Central Florida, Tracey set out in the real world at Florida Realtors in 1994 as a communication assistant, working her way up to editor in chief of Florida Realtor magazine. In 2004, she left the association to start her freelance writing and editing business. One of her first clients was REAL Trends, and she started working for the organization in 2005. In 2014, Tracey was promoted to editor in chief of publications for REAL Trends. She handles the writing and editing of all REAL Trends publications and marketing materials, including LORE Magazine, the REAL Trends newsletter and the blog. She is also the primary podcast interviewer where she conducts interviews with top real estate industry leaders and affiliated industry leaders. Tracey is married with two children.

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