Single-family housing authorizations, maintenance, and remodeling all decreased at the same time, a first since 2011
BuildFax has reported a potential housing market slowdown on the horizon after finding blanket year-over-year declines in single-family housing authorization, maintenance, and remodel volumes in November.
The BuildFax Housing Health Report found that this is the first time since 2011, when the economy was still in a period of recovery, that all three categories have decreased in the same month. Single-family housing authorizations decreased by 0.86% year over year; maintenance volume decreased by 5.85% year over year; and remodel volume decreased by 12% year over year.
“More so now than in years prior, the compounding effects of natural disasters, scarcity in the construction labor market, and recent tariffs have impacted housing growth – not to mention systemic factors, like rising mortgage rates, that influence consumer behavior,” BuildFax COO Jonathan Kanarek said. “While it’s natural to see some leveling off after steep growth, the next few months will be telling; whether a downturn is on the horizon or the market is simply softening is yet to be seen.”
The report, which leverages US property condition and history data to deliver macroeconomic as well as more granular trends, also revealed that eight of the last 10 instances of blanket declines occurred during the recession and its recovery in 2008 and 2009.