Tag Archives: housing industry

New Estimates of the Housing Wealth Effect

A new report from the NBER by Charles W. Calomiris, Stanley D. Longhofer, and William Miles shows that “on average, a single dollar increase in housing wealth raises consumption by between five and eight cents.” If the value of a homeowner’s house rises by one dollar, how much will that homeowner increase spending on consumption? In The Housing Wealth Effect: The Crucial Roles of Demographics, Wealth Distribution, and Wealth Shares (NBER Working Paper No. 17740), authors Charles Calomiris, Stanley Longhofer, and William Miles determine that the impact of… Read More →

Businomics Blog: Housing Recovery Progressing Very Slowly, 2011 edition

Businomics Blog: Housing Recovery Progressing Very Slowly, 2011 edition. Good housing commentary from Bill Conerly

2010 Business Year in Review

Care to take a guess at the top events affecting businesses in 2010? The struggling economy was voted the top business story of the year by U.S. newspaper editors surveyed by The Associated Press. The rest, as they say, is history. 1. Economy struggles: Climbing out of the deepest recession since the 1930s, the economy grows at a healthy rate in the January-March quarter. Still, the gain comes mainly from companies refilling stockpiles they had let shrink during the recession. The economy can’t sustain the pace. The lingering… Read More →

Commercial real estate indicator is positive

Note:  This index is a leading indicator for new Commercial Real Estate (CRE) investment. From the American Institute of Architects: Firm Billings Rebound in November At 52.0, the AIA’s Architecture Billings Index (ABI) recorded a three point gain from the previous month, and reached its strongest level since December 2007. With ABI scores above the 50 level in two of the past three months, the prospects of a sustainable recovery in design activity are enhanced. This graph shows the Architecture Billings Index since 1996. The index showed expansion… Read More →

How Texas Avoided the Real Estate Bubble: Market-Oriented Land Use Policies

Interesting post by Mark Perry today (including graph below) regarding the article How Texas Avoided the Great Recession: “One reason that Texas did so well is that it fully escaped the “housing bubble” that did so much damage in California, Florida, Arizona, Nevada and other states (see chart above). One key factor was the state’s liberal, market oriented land use policies. This served to help keep the price of land low while profligate lending increased demand. More importantly, still sufficient new housing was built, and affordably. By contrast,… Read More →

More signs of mixed, but continuing recovery

Among the noteworthy news of the week, several  examples of the continuing economic recovery include: Home Depot, the largest U.S. home-improvement retailer, is adding store jobs for the first time in four years in anticipation of a rebound in sales. Carload freight traffic on U.S. railroads is hit its highest level since November 2008 during the week ended March 27, 2010. The ISM Business Activity Index for non-manufacturing industries has now been in expansion (index > 50) for seven out of the last eight months, and for four… Read More →

Say Goodbye to the McMansion

Times have changed, and the square footage of new American homes is dropping. Super-sized homes are out, and efficiency and versatility are in. MarketWatch’s Amy Hoak reports on the latest building trends. http://s.wsj.net/media/swf/main.swf

Existing home sales take off

From the September existing home sales report: Existing home sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units from 5.09 million in August. That was the highest since July 2007. Single-family home sales gained 9.4%, while condo and cooperative sales rose 9.7%. By region, sales climbed across the board. They were up 4.4% in the Northeast, 9% in the South, 9.6% in the Midwest, and 13% in the West. The raw number of homes for sale dropped 7.5% to 3.63 million units from 3.924… Read More →

Housing highlights

The latest figures on home construction just came out. Here’s a rundown: Total housing starts came in at 582,000 in June, up 3.6% from an upwardly revised 562,000 in May. Permitting activity also climbed — 8.7% to 563,000 from 518,000 a month earlier. Starts haven’t been higher than this since November.. By property type, single family construction activity rose 14.4%, while multifamily construction dropped 25.8%. Single family permits rose 5.9%, while multifamily permits rose 18.8%. The increase in single family building was the biggest since December 2004. Regionally,… Read More →

Home sales gaining slightly

The existing home sales report for May just came out. Here’s what the figures showed: Existing home sales gained 2.4% to a seasonally adjusted annual rate of 4.77 million units from 4.66 million in April. That was slightly below forecasts for a reading of 4.82 million and down 3.6% from 4.95 million a year earlier. Single-family sales climbed 1.9%, while condo and cooperative sales rose 6.1%. Regionally, sales were mixed. They rose 3.9% in the Northeast and 9% in the Midwest. But transaction volume was unchanged in the… Read More →