Economic Center Blog

Mind The Gap…Between Household Formation And Home Building

By Mark Fleming on June 20, 2018

Closing the Housing Stock Gap

Today’s Census Bureau report sends an optimistic message about the housing market. Building permits increased 8.0 percent since this time last year, while housing starts rose 20.3 percent. The year-over-year increase in housing starts tells us that an increase in new housing supply is on the way. The pace of housing completions, at a 1.29 million seasonally adjusted annualized rate (SAAR), is particularly important as it brings new supply that can offset current housing shortages.

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Topics: Housing, Homeownership, housing starts, insider

What Does California's Solar Panel Mandate Mean For Affordability, And April Housing Starts Data Signal Optimism

By Mark Fleming on May 17, 2018

California moved to the center of the new residential construction solar system last week as it became the first state to mandate solar panels on new residential homes. The mandate is part of California’s “Energy Efficiency Strategic Plan,” which includes the goal that both residential and commercial construction be zero net energy by 2030. The jury is split as to whether the benefits of the new requirement will outweigh the costs. On one hand, the mandate will significantly expand mainstream use of solar power. However, it will add thousands of dollars to the cost building a new of home when the shortage of affordable housing is a significant concern in California. Clean energy advocates claim lower energy bills will more than offset the extra cost. We put this notion to the test.

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Topics: Housing, Homeownership, affordability, housing starts, insider

Two Trends Signal Housing Supply Relief On The Way

By Mark Fleming on April 18, 2018

It’s no secret that the limited supply of homes for sale is the biggest issue facing the housing market today. From a short-term perspective, this month’s overall pace of housing starts, 1.32 million units, may modestly alleviate the supply shortage. Housing starts increased 1.9 percent month over month and are 10.9 percent higher compared with March 2017. Housing completions, the number of net new homes added to the housing stock, increased by 1.9 percent compared with a year ago, which provides some immediate relief for the supply shortage.

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Topics: Housing, Homeownership, housing starts

What Does The First Release Of Housing Data In 2018 Say About The Housing Market?

By Mark Fleming on January 20, 2018

The end of 2017 brought mixed news for housing starts, according to Thursday’s release of December 2017 housing starts data, which marked the first report on national housing data this year.

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Topics: Housing, Homeownership, housing starts