Belmonte Builders’ Post

Understanding the dynamics of the housing market is essential for both potential homeowners and investors. Recently, a striking analysis revealed that the top five largest U.S. cities exhibit home price-to-income ratios that are more than double the national average of 4.7. This substantial disparity underscores the challenges many face in affording a home in these urban centers. For an in-depth look at this issue, visit https://okt.to/LZvA3O.

Construction starts on new housing units dropped 5.5 percent to a seasonally adjusted annual rate of 1,277,000 —  19.3 percent lower than levels in May 2023, according to U.S. Census data released Thursday.

https://lnkd.in/gGTiMBza For additional data on residential construction, please see the following news release from the U.S. Census Bureau: https://lnkd.in/g9zwNkiH #homebuilding #singlefamilyhomes #housingstarts #housingpermits #USCensusdata

After the start of the COVID-19 pandemic, house prices begun to rise at an unprecedented pace. With typical home values increasing by 36 percent in just 3 years, people in low-density suburbs of large markets, smaller markets, and rural areas are feeling this major impact. Discover more on how the COVID-19 pandemic affected growth of home prices in rural areas and how this is a pressing issue in the expansion of Northwest Arkansas by clicking the link below and reading this article by Harvard Joint Center for Housing Studies. https://lnkd.in/eBqfCwwf

There may not be a lot of homes for sale these days, but there is a lot of housing space sitting empty. In fact, the most in recorded history. The number of extra bedrooms, which is defined as a bedroom in excess of the number of people in the home, and even including one for an office, has reached the highest level since the U.S. Census began recording this metric in 1970, according to a new report from Realtor.com. Last year, which is the latest Census data available, the number of extra bedrooms reached 31.9 million, up from 31.3 million in 2022. Back in 1980, there were just 7 million extra bedrooms.

New-home construction swung back to positive territory in April after a March slide, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development said in a press release. New homes were built at a seasonally adjusted annual rate of 1,360,000, up 5.7% from 1,287,000 in March but down 0.6% from 1,368,000 in April 2023. Single-family housing starts, meanwhile, came in at a rate of 1,031,000, down 0.4% from 1,035,000 in March but up 17.7% from 876,000 in April 2023. #Miamirealestate #SouthFloridarealestate #MiamiRealtors #SouthFloridaRealtors

The Dallas-Morning News offered a great analysis on why it’s so hard to afford a home in Dallas-Fort Worth:   1.   Prices have outpaced wages: the average DFW home costs 4.4 the median income. 2.   Builders aren’t building fast enough: in the last decade, we’ve added 1.54 million people and just 661,000 homes and apartments 3.   Dallas has added more apartments in the last decade than anywhere in the country, but most are too expensive for the poorest of our region’s residents 4.   Housing inventory is up, but not enough to tip into a buyer’s market   These are not issues that will fix themselves overnight.   https://lnkd.in/g9wQshhW

Ever noticed how new homes are shrinking while prices keep climbing? New homes are shrinking, with median sizes dropping to 2,177 square feet by 2023, despite prices reaching record highs—$426,900 in June 2024. This "shrinkflation" is driven by supply and demand and rising land costs, especially in high-demand areas. Modern homes maximize space with efficient layouts, but how much space do Americans really need? Bankrate's 2024 Home Affordability Report reveals that 47% of homeowners have regrets, with 18% saying their home is too small and 10% feeling it's too big. For more information on home size trends, check out this Bankrate article written by my colleagues: https://lnkd.in/eWZMidPp

Nationally, the number of guest bedrooms—defined as bedrooms exceeding the number of persons in the home plus one (to account for an office)—has reached the highest levels in census history. Here are some key points about the latest report from Ralph B McLaughlin, Senior Economist at Realtor.com:  🏡 In 2023, the number of "extra bedrooms" reached 31.9 million in the U.S., up from 31.3 million the year prior and over four times the 7 million in 1980. 📈The share of all bedrooms considered “extra” has reached record highs at 8.8%. This is up from 8.7% the previous year and over twice the 3.5% rate in 1980. 🛏️ This growth is driven by larger homes (more bedrooms per household) and a decline in the number of people per household—falling from 3.1 in 1970 to a record low of 2.5 in 2023. 🌍 The excess of bedrooms is most notable in the Mountain West and South, where ample land allows for larger homes. In contrast, densely populated urban areas have fewer extra bedrooms due to the demand for space-efficient living and affordability. To read the full report, visit https://lnkd.in/gFKVusKn #ConnectingBuildersWithBuyers #EconomicTrends #Affordability #RealEstate

#Tulsa faces a housing shortage of - at least - 13,000 units. To meet this growing demand, we must collaborate on policy, financing and production initiatives to increase supply by over 50% annually. “The root cause of decreased housing affordability is the fact that housing supply has not increased enough to match demand. Inadequate housing supply leads homeowners and renters to bid up the sale price and rent of available housing, which puts a squeeze on affordability,” wrote Freddie Mac economists in their report.