Steel Markets
NAHB: Housing Affordability Increasing, Builders Still Challenged
Written by Laura Miller
June 9, 2023
Housing affordability is on the rise in the US, but builders are facing challenges in providing affordable housing, the National Association of Home Builders (NAHB) reports.
In the first quarter of the year, 45.6% of new and existing home sales were affordable to American families earning the country’s median income of $96,300, according to the NAHB/Wells Fargo Housing Opportunity Index (HOI). This was an increase from the lowest level seen since NAHB began tracking affordability – the 38.1% posted in Q4 last year.
Affordability is down, however, from Q1 last year when the HOI hit 56.9%. And it remains below the breakeven point of 50, NAHB noted.
“An uptick in housing affordability in the first quarter of 2023 corresponds to a rise in builder sentiment over the same period as well as an increase in single-family permits,” commented NAHB chairman Alicia Huey.
“And while buyer conditions improved at the beginning of the year, builders continue to wrestle with a host of affordability challenges. These include a shortage of distribution transformers and concrete that are delaying housing projects and raising construction costs, a lack of skilled workers, and tightening credit conditions,” she added.
The national median home price in Q1 declined by $5,000 from the prior quarter to $365,000, NAHB said. At the same time, average mortgage rates fell slightly from 6.8% to 6.46%, and the US median family income increased by 7%, or $6,300, to $96,300.
NAHB said the top five affordable major housing markets in Q1 were: Lansing-East Lansing, Mich.; Scranton-Wilkes-Barre, Pa.; Rochester, N.Y.; Toledo, Ohio; and Pittsburgh, Pa. The top five least affordable major housing markets were all located in California.
By Laura Miller, laura@steelmarketupdate.com
Laura Miller
Read more from Laura MillerLatest in Steel Markets
AISI: Raw steel production rises for second consecutive week
Domestic raw steel production ticked up again last week, now up to a three-week high according to the latest data released by the American Iron and Steel Institute (AISI).
Wolfe Research’s Tanners cautions on sheet storm’s darkening clouds
Wolfe Research Managing Director Timna Tanners cautioned clients about the darkening clouds of a brewing steel sheet storm in the company's Basic Materials Weekly Webcast on Monday. “This one we’ve been talking about for a while, and we feel like the theme is coalescing here,” she said.
Dodge Momentum Index rebounds on surge of data center planning
A surge in data center project planning pushed the Dodge Momentum Index (DMI), a leading indicator for the nonresidential construction sector, higher in April.
US construction spending levels off in March
Construction spending in the US in March was basically steady from the previous month but showed notable year-on-year (y/y) growth.
CRU: Brazil proposes quotas on steel imports, with tariff back up
Brazil’s chamber of foreign trade, Camex, has approved quotas on imports of 11 steel products and a 25% levy on shipments 30% above a product’s average import volume between 2020 and 2022.