Latest news with #builders
Wall Street Journal
5 hours ago
- Business
- Wall Street Journal
Housing Starts Weaken Amid Gloomy Builder Sentiment
Home-building lost ground in the U.S. last month as tariffs and labor issues bit into supply and high interest rates dragged on demand. Here are the main takeaways: from the Commerce Department's new report: Housing starts, a gauge of new residential construction, dropped nearly 10% in May to 1.26 million, according to a Commerce Department report Wednesday. That was down from a revised 1.39 million in April and was well below the expectations of economists surveyed by The Wall Street Journal. Starts were 4.6% lower on the year. Residential permits also fell by more than expected, to 1.39 million. President Trump's tariffs are hitting the construction sector, with builders reporting higher costs for materials, and many forced to pile on discounts to lure wary buyers. A crackdown on immigrant labor is also raising costs. Home-builder sentiment sunk to its lowest since 2022 and its third-lowest since 2012, the National Association of Home Builders said this week. High interest rates also are keeping mortgage rates at a level that dissuades many Americans to buy a house or move. 🏠 Dig deeper: Why Housing's Woes Are a Leading Indicator
CTV News
6 hours ago
- General
- CTV News
Showcase your excellence!
Ottawa Watch The 42nd Housing Design Awards Gala is a few months away and now is the time to submit your work.
Yahoo
7 hours ago
- Business
- Yahoo
Housing starts plummet to 5-year low. That could be a good thing for home buyers.
The numbers: Construction of new homes fell 9.8% in May, as builders pulled back amid waning demand from home buyers. Housing starts fell to a 1.26 million annual pace from 1.39 million the previous month, the government said. The annual pace refers to how many houses would be built over an entire year if May's rate of construction were to continue. 'I prepaid our mom's rent for a year': My sister is a millionaire and never helps our mother. How do I cut her out of her will? 'I'm at my wit's end': My niece paid off her husband's credit card, but fell behind on her taxes. How can I help her? Israel-Iran clash delivers a fresh shock to investors. History suggests this is the move to make. 20 companies in the S&P 500 whose investors have gained the greatest rewards from stock buybacks I'm 75 and have a reverse mortgage. Should I pay it off with my $200K savings — and live off Social Security instead? The pace of home building is down to the lowest level since May 2020 — during the peak of the COVID-19 pandemic. New-home construction is down 4.6% from the same period a year ago. Building permits, a sign of future construction, also fell 2% from the previous month to a 1.39 million rate. Builders have slowed down the construction of new homes primarily due to a pullback in buyer demand. Rising inventory levels and weak buyer demand have resulted in homes sitting longer on the market. That could be welcome news for buyers struggling with affordability challenges. More builders are cutting prices on new homes to encourage buyers. In June, 37% of home builders cut prices to boost sales, the National Association of Home Builders said. That's the highest share since at least 2022, when the lobbying group began tracking the data. Read more: More builders slash prices as home buyers stay away from the housing market At the same time, 'builders are operating in a very challenging environment and it showed up in the May construction data,' Danielle Hale, chief economist at told MarketWatch. 'With tariffs raising materials costs and immigration policy likely worsening labor shortages, the supply side of the equation is difficult and coupled with an environment where demand for new construction homes is weakening as the number of existing homes for sale grows,' she added. ( is operated by News Corp subsidiary Move Inc.; MarketWatch publisher Dow Jones is also a subsidiary of News Corp.) Read more: Key details: Single-family construction was nearly flat, growing just 0.4% in May from the month before. Multifamily construction, on the other hand, fell sharply by 30.4%. The pace of construction was uneven across the U.S. New-home construction grew in the West by 15.1%, but fell across the rest of the nation. The sharpest fall in new-home construction was in the Northeast, which saw a 40% drop. Permits, which indicate future home-building activity, were also down in May. Permits from builders to construct single-family homes fell by 2.7%, while permits to build multifamily homes rose 1.4%. The negative housing data was 'not entirely surprising,' Odeta Kushi, a deputy economist at First American, wrote on social-media platform X, because builder confidence has been souring. Sentiment among builders has dropped sharply, due in part to weak buyer demand. 'Builders are doing the market equivalent of the 'get me out' trade',' Stephen Stanley, chief economist at Santander U.S. wrote in a note. 'They are slashing new production, while, at the same time, offering increasingly aggressive incentives to sell their inventory.' Read more: Home sellers face an 'absolutely brutal' market that's tilting in buyers' favor Big picture: Home sellers are turning out to be the biggest losers in the current housing market — that includes home builders. Naturally, they're responding by pulling back. Sellers on all fronts are feeling the burn from the lack of sales. The spring home-selling season was a bust. Builders and homeowners who are selling their properties are cutting prices to encourage buyers, which is eating into their profitability. Buyers, on the other hand, are likely to gain power, based on recent trends in housing data. Even though new construction slowed, the number of homes that are being finished is still 'a fair amount,' Hale said. In May, the number of completed housing units grew by 5.4% across the nation, with single-family completions up 8.1%. 'This means that shoppers in the market for a new home will still have options in many markets and are likely to be in a good place to negotiate,' she added. Israel-Iran conflict poses three challenges for stocks that could slam market by up to 20%, warns RBC These defense stocks offer the best growth prospects, as the Israel-Iran conflict fuels new interest in the sector 'I'm 68 and my 401(k) has dwindled to $82,000': My husband committed financial infidelity and has $50,000 in credit-card debt. What now? My husband is in hospice care. Friends say his children are lining up for his money. What can I do? 'He failed in his fiduciary duty': My brother liquidated our mother's 401(k) for her nursing home. He claimed the rest. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
7 hours ago
- General
- Yahoo
Builders hit with backlash after shocking act in public park: 'It's beyond unacceptable'
One of the great simple pleasures in life is a long stroll through the park, though encroachments by private property owners can make this increasingly difficult for local residents. Mardyke Open Space in the London Borough of Havering offers a wonderful area for kids to play, dogs to be walked, and anyone to enjoy the meadowy outdoors. That was until, in early May, a group of builders cut through the park's fencing and began cutting down the trees and bushes in the area. An article by The Havering Daily stated: "The workers … were seen using diggers to cut through metal fencing and drive along a public footpath. Residents estimate that approximately 40 feet of greenery was completely destroyed." Protecting communal spaces is a global concern. Recently, a property owner in Florida was penalized for filling in a protected waterway with rocks and dirt, adding to his land and harming the environment. Someone else in British Columbia illegally dredged a creek, detrimentally harming its salmon population. The Havering Daily reported that two nearby residents were called to observe the destruction. In the article, one resident said: "The land there is now completely flat, everything has gone. There are children playing, families walking — and now diggers are being driven over the public paths. It's beyond unacceptable." The outrage from Mardyke Open Space lovers is real, and it speaks to the locals' true appreciation of the area. While requests have been made for the destruction to stop until a proper investigation is launched, park visitors can only hope for a win, as well as for some rebuilding. Though situations like these can feel scary and out of control, the choice to bring in law enforcement and show public disapproval is a step in the right direction. By using their voice and taking local, immediate action, the hope is that public area destruction can be handled and that free, open spaces like this one can continue to thrive. Do you think America is in a housing crisis? Definitely Not sure No way Only in some cities Click your choice to see results and speak your mind. Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
Forbes
9 hours ago
- Business
- Forbes
Building The Trades: We Can't Afford A $10 Billion Annual Housing Loss
Construction workers are in high demand as the country faces a severe affordable housing crisis. The United States and many other parts of the world are currently experiencing an affordable housing crisis. While there are many levers driving that crisis, one critical factor is a shortage of skilled trade workers. New research from the Home Builders Institute and the National Association of Home Builders (NAHB) revealed that the skilled labor shortage is causing an annual economic impact of $10.8 billion in the single-family home building sector. While home builders face higher material costs and more regulation that adds to time delays and extra costs, they also are scrambling to find skilled labor to start new home projects. The shortages mean fewer new homes are built, which means fewer homeowners are moving up, and fewer existing homes are becoming available to first time buyers as a more affordable option. Without having skilled labor, construction times are extended by an estimated two months. That extended construction time is responsible for the annual economic impact of $10.8 billion, which can be broken down into higher carrying costs and lost production. Extended construction times add up to $2.6 billion in direct costs, plus, it's estimated that in 2024, builders weren't able to build about 19,000 single family homes, representing a loss of $8.1 billion. Now, we need solutions. We need ways to fill that skilled labor gap that can help deliver the housing efficiently and effectively so that the costs are within reach of more Americans. Lowe's Chairman and CEO Marvin Ellison (left) and David Gitlin, Chairman and CEO at Carrier Global ... More Corporation discuss workforce development at Business Roundtable's event. The Business Roundtable, an association of CEOs of top U.S. companies, hosted a forum to discuss how large employers are creating new pathways for workers, including current best practices that expand opportunities in skilled trades and manufacturing roles. One of the main hurdles for these programs to be successful is the perception of these types of jobs. 'I grew up in a rural community in Tennessee and it wasn't uncommon that there was a vocational building next to a high school,' said Marvin Ellison, who serves as chairman and CEO at Lowe's. 'Many of my former classmates turned those into jobs, but then into careers and businesses. Sometime we started looking at that as less than.' Leadership at Lowe's saw that transition happening and decided to take responsibility for change by investing $50 million over five years to a training program to build skills and open the door to individuals wherever they choose to work. 'The construction trade has 500,000 open opportunities as we sit here,' Ellison said. 'There are 80,000 job openings for electricians per year, but they cannot find the skilled labor. AI is not going to fix a hole in your roof or stop a water heater from leaking. We'll always need skilled trades individuals so we started investing directly into vocational schools and organizations with a commitment in skilled trades.' The cultural shift goes well beyond no longer having vocational schools next to high schools. The school systems and their respective high school counselors that have the power to and the role of guiding students into careers and lifelong decisions have metrics based around college placements and therefore rarely point a student into the trades. 'There is a knowledge gap with guidance counselors,' said Calvin Butler, the president and CEO at utility company Exelon Corporation. 'They need to prompt students to consider careers outside of the traditional college path. Think beyond it and change lives.' This Business Roundtable session was moderated by Kevin O'Connor, skilled trades champion and the host of PBS's 'This Old House." Here he speaks with founder of Angi on the career opportunities in the trades. 'Demand in HVAC is doubling, but fewer folks are entering the field,' said David Gitlin, chairman and CEO at HVAC company Carrier Global Corporation. 'In just 10 years, we've gone from 1 of 3 going to a vocational school to 1 in 6. The amount of applicants is decreasing, and the availability of younger applicants is decreasing, and the demand is increasing.' He is leading Carrier to commit to making it a more attractive career by partnering with unions, and creating career advancements to give more upward mobility. The company is offering training, with a focus on the importance of how technology and virtual reality can assist the role, so participants get skills training, plus training in the digital realm. Sara Armbruster is the president and CEO at manufacturing company Steelcase and also said the ultimate need is to reframe views of careers in manufacturing that aren't always someone's first thought of what they want to do, help them see the possibilities which can be a life changing moment. New federal policies are changing the discussion for builders as well, with tariffs adding additional cost pressure and the deportation of immigrants reducing the available skilled worker pool for home builders. While the tariffs seem separate from the labor aspect, they are connected in several ways. A stable cost environment is needed to create a healthy supply chain, improve cost dynamics, and to maintain strong companies that can manage projects. 'Once the tax bill is passed, it will give people more opportunity to forecast costs,' said Peter Davoren, the chairman and CEO at Turner Construction Company. 'The U.S. has gone through modern day industrial revolution, and 90% of all materials for construction can come from the U.S. Eight years ago, one-third came from overseas, that's now at 10%. I think it will go up to 100% of all construction materials in the U.S. I believe we will be self-sufficient building with materials within the U.S.' He says that can happen by making the industry more welcoming. 'We need to provide all encompassing loyalty to employees and shareholders,' he said. 'There are so many workforce development programs providing the models for people to enter the industry, but not attracting them because of the perception of the industry." Finding workers in the short term might rely on immigration program reforms. Part of that could include a clear, efficient path for citizenship for people who seek work in the industry. Currently, immigrants account for 31% of all workers in construction trades, according to data from the U.S. Census Bureau. When I recently attended NAHB's spring leadership event, a lot of discussion was about how to approach this issue. There is passion around it, considering many builders are small business owners who are reliant on illegal immigrants to sustain their business. While they don't want to do something illegal, they also don't want their business to fail. Armbruster and the other CEOs at the Business Roundtable event hope for more certainty and stability from the government so they can guide their companies in better, more strategic decision making. Recently I was speaking with the editor at Rural Builder magazine who is writing about AI for his audience of 30,000 small builders in small U.S. markets. He spoke about a couple of his readers who have fairly manual processes and was frustrated by their reluctance to adopt technology that will help their business. Understandably, these are small business owners and any and all change is a risk, however, he recognizes that what these builders are doing with spreadsheets and hand drawings can be more accurate and much more efficient by using technology. The supply chain can certainly boost pro usage of technology. If the builder is buying lumber from a dealer that is using digital processes, the builder will need to also get up to speed. But, dealers are equally reluctant to adopt technology because of the large transformation and commitment it takes to do it. When companies do it though, there is a substantial pay off, said Blake Moret, the chairman and CEO at Rockwell Automation. His company has proven that technology offers the ability to be more efficient, and earn more profit. He also has been able to use that profit to expand into new lines of business. Dealers serving home builders could do the same, adding value in pivotal ways with efficiencies that will reduce costs and open the door to more affordable housing. As the nearly $11 billion in annual losses shows, we need solutions now. 'The need for speed cannot be underestimated or overstated,' said Julie Sweet, the chair and CEO at staffing company Accenture. She shared that the speed of transformation is possible. In November 2022, Accenture had only 30 people working on generative AI. Today, just two and a half years later, the company has more than 500,000 who have received AI fundamentals training, and more than 250,000 who have received advanced training, plus more than 70,000 are now deep data and AI specialists. She believes this is something that can be done, and it can be at speed, but it has to be done by thinking collectively. Small- and medium-sized enterprises have to buy in, which in the case of the Rural Builder audience can be a struggle, but it also is where the majority of economic activity happens. Keith Sonderling serves as the Deputy Secretary at the U.S. Department of Labor and is working on an executive order to set up one million apprenticeships every year. He emphasized the importance of technology in this process, in particular the adoption of AI. 'We have to train workers on how to use AI to make their lives better personally and at work and not worry about displacement,' he said. 'We have another executive order about AI literacy to understand how the next generation of workers can use AI. We need to start developing that AI curriculum to get it into classrooms as soon as possible. It really comes down to trust, adoption of AI is hard because there isn't trust.' The objectives are big and critical. The country needs 2.2 million new skilled construction workers over the next 3 years to start to meet what NAHB estimates at 1.5 million housing shortfall. Yet, optimism reigns. Manufacturers and service providers are investing in ways to lower costs for builders by using AI for its time saving advantages. And, we're all in this together. Even the folks in office jobs serving the home building industry have to take a role in building up the image of trade work, and it won't be easy. 'I truly believe the best is yet to come,' Davoren said. 'We have to get through the distractions. Go out and care for everyone you come into contact with and the strangers you don't come in contact with until you meet them for the first time. It's hard work. You might impact someone's life and they will model that behavior and impact someone else's life.'
