How Often People Move Can Impact the Housing Market

Just like any other consumer product the more something is in demand the better the market for it. The housing industry is no exception to the rule. Everyone needs a place to live so this, in turn, affects every aspect of the housing market from real estate to lending to title. The data collected

regarding if and when people are moving can interpret if the housing market is thriving.

There are a variety of sources and people interpreting the data collected. This can hinder a potential home buyer’s research when it comes to the housing market. There are many “spin doctors” who want to influence the public and might be steering them in the wrong direction. When it comes to research, there are many ways to discern what is fact and what is fiction.

Go to the facts, remember for the most part numbers don’t lie. The Census Bureau is a great neutral source. The Census Bureau is supervised by the Economics and Statistics Administration within the Department of Commerce.

The history behind the Census Bureau is interesting within itself. Founded in 1790 when Secretary of

State Thomas Jefferson appointed U.S. marshals throughout the country to collect data on the 3.9 million residents. For the next 150 years, the six question census added many categories that included manufacturing, agricultural, mining, fisheries, native language and others. In 1940, data on housing was added (other than the names of those living in households) and the real estate industry began using the data to predict the health of the housing market.

The homeownership rate is an important statistic to focus on as a baseline to research. An interesting fact according to the census, is that the homeownership rate has held steadily for approximately 60 years. According to housingwire.com, the ” rate is calculated on the proportion of households that are owner-occupied and has continuously held strong in the 60-70% range throughout the years.”

Throughout the years the highest at 70% was in 2005 and the lowest at 62% was during the recession.
Statistics in migration patterns show that 43% of people move due to housing-related issues, 27% move because of family-related issues, 18.5% move because of employment issues and 10.6% move for other various reasons. The Southern Region of the country has seen the largest migration pattern.

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NAHB’s Analysis Shows Gain in Custom Home Building for 2019

Low Mortgage interest rates have supported a surge in custom home building in the fourth quarter of 2019. The NAHB’s analysis of Census Data from the Quarterly Starts and Completions by Purpose and Design survey revealed that custom home building increased at the end of 2019.

The US Census Bureau’s Survey of Construction (SOC) is a survey conducted by the US Census Bureau and partially funded by HUD (Department of Housing and Urban Development). The SOC reports up to date national and regional data on housing starts, completions and characteristics of all residential housing. The data which is collected includes the start date, completion date, sales date, sales price (single-family houses only), and physical characteristics of each housing unit, such as

square footage and number of bedrooms. The Quarterly Starts and Completions by Purpose and Design is based on the Building Permits Survey and from the Survey of Construction (SOC).

The National Association of Home Builder’s analysis shows 44,000 total custom building starts during the fourth quarter of 2019. This is a 16% gain over the same quarter in 2018 which totaled to 38,000 total custom building starts. Data shows a solid gain occurred during the last four quarters with custom housing starts totaling to 177,000.

The custom home building market will continue to expand with demand from both owner and contractor built homes. The low mortgage interest rates will protect the custom home building market thus maintaining the positive custom home building outlook.

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Private Residential Construction Spending Still on the Rise

Decreasing mortgage rates along with solid growth of spending on single-family construction and remodeling have kept the private residential construction up for the sixth consecutive month. According to the National Association of Home Builders, the Census Constructions Spending data reveal a 1.4% increase to a seasonally adjusted annual rate of $540.7 billion for total private residential construction spending this last December.

The National Association of Home Builders provides a monthly estimate of the total dollar value of construction work done called The Value of Construction Put in Place Survey (VIP). On the first day of each month data collection and estimation activities begin for the month. The data that is recorded includes the cost of labor and materials, cost of architectural and engineering work, overhead costs,

interest and taxes paid during construction, and contractor’s profits. The survey is based on construction work that is done each month on improvements to existing structures or new structures for private and public sectors.

The growth in spending on single-family construction and remodeling has been great for the housing industry. Single-family spending was up 2.7% in December 2019 at an annual pace of $289.3 billion. This was 5.2% higher compared to the figures reported in December 2018. The figures included in the private residential improvements were based on spending on remodeling, major replacements, and additions to owner-occupied housing units. In December the figures rose to a seasonally adjusted annual rate of $193.7 billion.

In the second half of 2019, as seen in the graph, there has been solid growth in single-family construction and home improvement. Also shown is new multifamily construction spending which slowed down since last summer but did see solid growth from 2010 to 2016 and a growth spurt from late 2018 to early 2019.

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Greyhound A New Gastropub For Covington

If you are a local then you know about Del Porto Ristorante in downtown Covington. The owners, Torre and David Salazzo, serve delicious Italian cuisine at the local restaurant. The Salazzos want to open a second restaurant that will have a broader selection of food and flavor with a laid back neighborhood vibe. Greyhound will be located just down the street from Del Porto Ristorante and will be a gastropub.

Del Porto Ristorante opened its doors to Covington in 2002. The Solazzos opened the restaurant in a

smaller location than it currently resides. The original had just 10 tables which served “a fresh, seasonal take on regional Italian cuisine, and an alternative to the more prevalent local standard of Creole Italian.” In 2007, Del Porto moved to its larger location and then grew again taking over the adjacent storefront.

Although the new restaurant will be casual with a laid back atmosphere, it will be a cut above traditional tavern-style. There will be a wood-burning oven for pizza along with other fanfares such as burgers, tapas-style dishes, German sausages, fried chicken, Reuben sandwiches, matzo ball soup and beef short ribs just to name a few. Inspiration for the unique menu will come from the “family meals” that are made for the staff at Del Porto. The bar will offer bottled and canned beers with some offered on tap.

“It just opens up a lot of possibilities for us,” Solazzo said. “It won’t be a huge menu, but we keep on putting down all the food we like to eat, so it’s been growing.”

The Greyhound, named after the Greyhound bus station that once resided at 705 E. Boston St., plans

to begin serving lunch and dinner in May 2020. Work on the building has begun and will include configuring the restaurant into a main bar and a separate pizza bar.

“In the years we’ve been here, we’ve seen a lot of young people growing up, we think there’s a need for a place like this that’s more casual,” she said. “We want to stay in our little downtown area and bring something new here.”

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