“After a run up over the first few months of the year, rates have paused and hovered around three percent since March,” said Sam Khater, Freddie Mac’s Chief Economist. “Despite this favorable rate climate, there remains a shortage of homes for sale. The lack of housing supply has been compounded by labor disruptions and expensive building materials that are driving up the cost of new housing, making it difficult for homebuyers to find homes to purchase.”
News Facts
30-year fixed-rate mortgage averaged 3.00 percent with an average 0.6 point for the week ending May 20, 2021, up from last week when it averaged 2.94 percent. A year ago at this time, the 30-year FRM averaged 3.24 percent.
15-year fixed-rate mortgage averaged 2.29 percent with an average 0.7 point, up from last week when it averaged 2.26 percent. A year ago at this time, the 15-year FRM averaged 2.70 percent.
The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.
According to Freddie Mac’s (OTCQB: FMCC) Quarterly Forecast, mortgage rates will continue to move up with the 30-year fixed-rate mortgage averaging just above three percent through the end of 2021.
“As the economy continues to improve, we expect conditions to remain generally favorable for the housing and mortgage market,” said Sam Khater, Freddie Mac’s Chief Economist. “Higher mortgage rates have the potential, however, to dampen the robust demand we’ve been experiencing, and we therefore forecast total originations to decline to $3.5 trillion in 2021.”
Khater continued, “Other important obstacles to consider include high home prices and low housing supply that will certainly influence the trajectory of purchase activity specifically.”
According to Freddie Mac’s Forecast:
The average 30-year fixed-rate mortgage is expected to be 3.2 percent in 2021 and 3.7 percent in 2022.
House price growth is expected to be 6.6 percent in 2021, slowing to 4.4 percent in 2022.
Home sales are expected to reach 7.1 million in 2021, falling to 6.7 million homes in 2022.
Purchase originations are expected to increase to $1.7 trillion in 2021 before dropping to $1.6 trillion in 2022.
Refinance originations are expected to be $1.8 trillion in 2021 before falling to $770 billion in 2022.
Overall, annual mortgage origination levels are expected to be $3.5 trillion in 2021 and $2.4 trillion 2022.
Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac, and Freddie Mac’s blog FreddieMac.com/blog.
Single-family housing starts ended 2020 on a high note, rising 12% in December to a 1.338 million unit pace – the highest pace since 2006, according to the Census Bureau.
That’s up 27.8% from one year ago, a remarkable figure given the economic effects of the COVID-19 pandemic, per industry officials.
“2020 will go down, quite unexpectedly, as one of the best years for home builders in recent memory, and proof that great challenges — and not just those posed by COVID — can be overcome with hard work and creativity,” said Matthew Speakman, Zillow economist. “Demand for homes remains sky high, despite the still-raging pandemic, as people look to take advantage of historically low mortgage rates and find their next home. “
An estimated 1.380 million housing units were started in 2020 – 7% percent above the 2019 figure of 1.29 million
Remarkably, most industry experts believe construction rates will climb even higher in 2021.
“We expect single-family construction to move up 9% in 2021 — a much-needed relief valve for homebuyers,” said Danielle Hale, chief economist at Realtor.com. “While buyer demand has slowed since December, it remains notably higher than one year ago, giving builders a strong incentive to keep building.”
Hale added that builder optimism is higher than it was one year ago, but rising material costs and low land inventory are weighing on builder confidence in the short term.
“Supply-side headwinds will remain in 2021,” added Odeta Kushi, First American deputy chief economist. “Given the underbuilding that took place in the decade following the Great Recession, it will take years for builders to close the deficit.”
Even with the promise of additional relief funding from President Joe Biden’s American Rescue Plan, most homebuyers are still looking for houses with large work-from-home areas — a sign that confidence in the eradication of the virus, and a restart of face-to-face interaction, remains low.
“The past year has also cemented the smooth transition towards touring homes virtually and digitalizing many parts of the mortgage process, making homebuying much safer in light of the ongoing public health situation,” said John Pataky, executive vice president at TIAA Bank.
Privately-owned housing starts in December also jumped from November — a 5.8% rise with a seasonally adjusted annual rate of 1.669 million. That’s also 5.2% above the December 2019 rate of 1.587 million.
Austin Niemiec, Rocket Pro TPO executive vice president, urged brokers to maintain a focus on purchasing and ensuring solid internal processes.
“Brokers should be ready to support clients looking to secure their dream home,” he said. “This will be another strong year for loan officers, and new houses will play an important role in making sure we assist buyers at a high level.”
In authorizations, units in buildings with five units or more were authorized at a rate of 437,000 in December. Privately owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,709,000 — 4.5% above the revised November rate of 1.635 million.
Single-family authorizations in December were at a rate of 1.226 million, a rise of 7.8% above the November figure of 1.137 million.
Lawrence Yun, National Association of Realtors chief economist, is optimistic the housing sector will be a major player in the economy’s recovery in 2021.
“More construction also means more local job creation,” he said. “The worst of the housing shortage could soon come to an end.”
In the past year, homeowners with mortgages, representing about 63% of all properties, have seen their equity increase by 10.8%, according to CoreLogic.
That equates to a collective $1 trillion in gained equity, or an average $17,000 per homeowner.
This is the largest equity gain in more than six years.
Blake Nissen | The Boston Globe via Getty Images
American homeowners are $1 trillion richer as the pandemic-driven housing boom pads their pockets.
As prices rise, home equity multiplies. In the past year, homeowners with mortgages, representing about 63% of all properties, have seen their equity increase by 10.8%, according to CoreLogic.
That equates to a collective $1 trillion in gained equity, or an average $17,000 per homeowner, the largest equity gain in more than 6 years.
Homeowners in some states saw greater equity gains than others. States with the hottest home prices saw the biggest gains.
In Washington state, homeowners banked an average of $35,800. In California they gained $33,800 and in Massachusetts an average of $31,200.
However, homeowners in North Dakota, which was particularly hard-hit by the pandemic, saw the lowest annual equity gain of just $5,400.
“Over the past year, strong home price growth has created a record level of home equity for homeowners,” said Frank Nothaft, chief economist for CoreLogic. “The average family with a home mortgage loan had $194,000 in home equity in the third quarter. This provides an important buffer to protect families if they experience financial difficulties.”
It has contributed to historically low foreclosure rates, although part of that is also due to mortgage forbearance programs put in place at the start of the pandemic. Still, it will help those borrowers who are struggling most and may not be able to keep their homes. They can sell into the market and potentially still make a profit.
Prices are rising so quickly because demand for housing is incredibly strong and supply equally lean. The work and school-from-home culture of the pandemic only increased demand that had already been rising, as the millennial generation aged into their homeowning years. Mortgage rates, which have set 14 record lows so far this year, have helped even more buyers get in the game.
So far, homebuying has not eased much, especially for newly built homes. Signed contracts on existing homes, however, fell slightly in September and October. This may be less a demand issue and more a problem with continued tight supply, as well as weakening affordability.
Some, however, claim the run on housing may actually be running out of steam.
“With pent-up demand from the spring now largely expended, mortgage interest rates unlikely to fall further, inventory at record lows and early signs that the exodus from cities is slowing, home sales will edge back further over 2021,” wrote Matthew Pointon, property economist with Capital Economics. “That, alongside tight credit conditions, suggest the current boom in house prices will prove short-lived.”
The exodus from major cities also appears to be slowing, with some buyers heading back in looking for bargains.
While home price gains may ease, prices are unlikely to weaken dramatically, simply because of the supply and demand imbalance. That will continue to help those borrowers who have the least amount of equity.
As it stands now, the share of borrowers in a negative equity position, owing more on their mortgages than their homes are worth, is down over 18% from a year ago. There are now just 3%, 1.6 million mortgaged properties, in a negative equity position.
The Covid-19 pandemic has pushed real estate sales activity and prices to new records in New York’s Hamptons, North Fork and Long Island regions.
The median sales price of a Hamptons home spiked 40% year-over-year in the third quarter, according to a report Thursday from Douglas Elliman. That price, $1.2 million, is the highest in 15 years, since the company began tracking prices in the region.
Sales also were up more than 50% in the third quarter, compared to the same time last year, the data showed. That’s the largest year-over-year sales increase in nearly seven years.
Sales also were up 40.2% compared to the second quarter, the report found.
“Sales surged quarter over quarter, rebounding quickly from the restraint of spring market activity at the onset of the Covid crisis,” according to Jonathan Miller, chief executive of real estate appraisal firm Miller Samuel and author of the Douglas Elliman reports.
Sales of luxury homes, defined as the top 10% of the market, were up 38.6% in the third quarter compared to the second, Elliman found. Year-over-year, sales were up 48.8%.
Luxury prices dipped 9.7% to $5.8 million from the second-quarter number of $6.4 million, the report showed. But year-over-year, prices rose 65.7%.
The North Fork has also seen increased demand in the third quarter because of concerns over Covid-19, according to Elliman.
In that part of Long Island, the number of sales was up 71% quarter-over-quarter and 41.3% year-over-year, according to the report. In addition, the median sales price rose 18.1% to $702,500 in the third quarter, compared to the previous quarter, the highest level in more than 14 years of tracking.
Luxury sales in the North Fork rose 71.4% in the third quarter, from 14 in the second quarter to 24 in the third. The median sales price for high-end homes was $1.97 million, a 29.3% year-over-year rise, Elliman found.
At the same time, the total volume of sales in both areas was up 101.5% in the third quarter, compared to the same time the previous year, according to the third-quarter report for the Hamptons and North Fork from Brown Harris Stevens.
Sales for the third quarter amounted to more than $973 million, compared to $483 million in the same quarter of 2019, according to the report, also released Thursday.
“The easing of restrictions at the end of [the second quarter] had a dramatic impact on Q3 2020, and the market embraced a frenetic pace, resulting in a doubling of the dollar volume of Q3 2019,” Philip V. O’Connell, managing director of Brown Harris Stevens in the Hamptons, said in the report. “The end of Q3 2020 has settled into a strong market, which we expect to continue throughout the year.”
Sales on Long Island, overall, also surged in the third quarter, according to Elliman.
The number of closed sales was up 56.9% quarter-over-quarter, with the median sales prices up 6.6% to $500,000, the report showed.
On the luxury side, sales increased 56%, from 459 in the second quarter to 716 in the third, Elliman found. The median sales price jumped 12.3% to $1.24 million in the third quarter, compared to $1.1 million the previous quarter.
Developers struggle to build apartments in busy, social neighborhoods at a price Gen Z is willing to pay.
In October, AvalonBay Communities will open 238 new apartments at Kanso Twinbrook in Rockville, Md., near Washington, D.C. Courtesy AvalonBay Communities
Developers often want their new developments to appeal to the youngest renters. That may be difficult with the young people of Generation Z, now graduating from college and looking for places to live.
They are notoriously frugal. The oldest—born from the mid- to late 1990s—came of age during the long, slow recovery from the global financial crisis. They were used to living on a budget long before the new economic crisis caused by the spread of the novel coronavirus.
“Gen Z tends to value experiences more than they value things or possessions,” says Lela Cirjakovic, executive vice president of operations for Waterton, an apartment company based in Chicago. “They also place a high value on community… Spending time with people doing things is more valuable to them than having luxury items.”
That frugality might keep Generation Z away from new buildings in the most expensive housing markets—even though they are drawn to social areas.
“Land costs in the urban core likely preclude the delivery of new apartments that most Gen Z renters can afford,” says Greg Willett, chief economist for RealPage, a technology and data company based in Richardson, Texas. “Those who can afford new developments at all probably will opt for suburban settings.”
New Apartments Designed for Frugality
In October, AvalonBay Communities will open 238 new apartments at Kanso Twinbrook in Rockville, Md., near Washington, D.C.
Kanso Twinbrook does not have a leasing office. Instead, it has a prospect self-entry showroom with a sample finishes and a digital screen to describe the community. Courtesy AvalonBay Communities
“Kanso will be our first new development without any physical amenities or even a leasing office,” says Karen Hollinger, senior vice president of strategic initiatives for AvalonBay Communities, headquartered in Arlington, Va. “I’m not sure any one generation has the lock on frugality, but certainly there is a growing demand by a younger generation for a lower net cost housing model.”
Willett adds that research typically paints Gen Z as a practical group with frugal spending patterns. “So many of them grew up in cash-strapped households. … Housing affordability has been a challenge for the group, especially for those with substantial student debt.”
However, these young adults do require strong, fast Internet and cellphone service.
“Tech is a deal breaker,” says Cirjakovic. “On a very basic level, reliable and robust service in apartments and common spaces is critical.”
Young renters are also more likely to expect their homes to include Internet-enabled devices like smart thermostats and electronic locks. Elie Rieder, CEO of Castle Lanterra Properties, says, “Smart homes are a gimmick to previous generations but a must for Generation Z, as conservation and control are simply standard with them.”
Being frugal, these younger renters are often less likely than older renters to pay a premium of extra rent for this Internet-enabled gear. “It will be the base expectation versus a differentiator for them,” says Rieder.
Gen Z May Choose Roommates Despite Pandemic
When times get tough, young renters often double up with roommates or move home to live with their parents for a time.
“Younger cohorts are typically disproportionately affected by employment losses in recessions, a fact already reflected in the April and May job reports,” says Andrew Rybczynski, managing consultant in the Boston office of CoStar Portfolio Strategy. “We expect household consolidation for economic reasons, which could also prevent move-outs from parents’ households.”
Apartment developers had begun to build new “co-living” communities based around the idea that renters would want to share space as roommates.
“The model of large-scale shared housing fits well with a desire for lowered costs and increased socialization, but it certainly doesn’t fit well with the need to quarantine,” says AvalonBay’s Hollinger. “If financing was tough before, it just got much tougher.”
In the aftermath of the pandemic, tough economic times and the ability to work remotely may steer young renters away from the most expensive urban markets, like San Francisco and New York City. “Markets with high rents will likely suffer the most, as Gen Z decides to seek markets where they can achieve a much more favorable balance,” says Cirjakovic.
Young renters may also have less need to live near job centers. “Post-pandemic, almost anyone who is not a service provider can potentially work remotely,” says Cirjakovic.
However, these young renters will probably still want live near entertainment, dining, and other people in their age group. “Culture, connectivity, and proximity to similar people will be the draw,” says Rieder. “True walkable live-work-play locations are key. That usually means very urban.”
Magnificent natural beauty and unbeatable scenery abounds in America’s legendary mountain ranges. But if you’re not into backcountry camping or roughing it, accessing this country’s towering terrain can be puzzling. Lucky for you, there are plenty of mountain towns chock-full of character and class that make visiting some of the United States’ most stunning regions a breeze.
From the obvious to the underrated, these are the best mountain towns in America.
Telluride, Colorado
Credit:Adventure_Photo/iStock
Boasting world-class ski slopes sprawling across more than 2,000 acres, it’s no wonder Telluride and its ski resort top our list of best mountain towns in America. It was also ranked as the number one Best Small Town to Visit according to U.S. News and World Report. The town of roughly 2,500 residents is nestled in a steep valley dominated by the San Juan Mountains. Come in winter and choose from nearly 150 uncrowded ski trails. Visit in summer and the same terrain becomes an epic hiking range. History buffs will enjoy poking around this former gold mining town and visiting the Telluride Historical Museum and even non-skiers will love soaking up the atmospheric Mountain Village.
McCall, Idaho
Credit:knowlesgallery/iStock
Lesser known, but no less enticing, McCall is a perfectly-situated resort town offering a host of activities in every season. Payette Lake, a glassy glacier lake framed by the snow-dusted peaks of the Payette National Forest, booms in the summertime. Brundage Mountain’s mixture of groomed trails and backcountry terrain draws skiers and snowboarders throughout the long winters. Top off a chilly day on the slope with a dip in the Gold Fork Hot Springs, just 30 miles south of town. And if you visit in winter, the renowned McCall Winter Carnival is a must.
Taos, New Mexico
Credit:JacobH/iStock
It’s usually deserts, not mountains, that come to mind when you think of the American Southwest. But you can find the best of both worlds in Taos, a spirited town full of culture and tradition that also happens to be wrapped in the Sangre de Cristo Mountains. Taos is best known for Taos Ski Valley, a rugged and untamed resort with beginner to advanced trails. But the town also houses the only Native American community that’s designated both a UNESCO site and National Historic Landmark. Taos Pueblo showcases 1,000 years of history in its iconic mud and straw dwellings. Combine the slopes and the deep-rooted history with the town’s natural beauty and its appeal becomes undeniably clear.
Helen, Georgia
Credit:SeanPavonePhoto/iStock
Sitting on the cusp of the Blue Ridge Mountains (a segment of the Appalachians) in northeast Georgia, Helen oozes charm. With cobblestone streets, mountain cabins for purchase, and painted buildings, you’ll feel like you stepped out of Georgia and into a European alpine village. Its location makes it a desirable year-round destination. The Chattahoochee National Forest flows right into Helen’s state parks, veiling numerous waterfalls, hundreds of miles of hiking trails, multiple beaches, and countless fishing spots. Designated Georgia’s Outdoor Adventure Destination, Helen also offers tubing in the Chattahoochee River, camping, mountain biking and kayaking. In between adventures, dive into the dozens of specialty shops packed into the town’s two square miles. Helen’s got everything you might want – and more.
Jackson Hole, Wyoming
Credit: gary yim/Shutterstock
Located on the southern border of two heavy-hitting national parks and surrounded by the almighty Teton Mountain Range, Jackson Hole is far from an unknown mountain town. The town’s claim to fame is undoubtedly the world-renowned Jackson Hole Mountain Resort which is more like its own self-operating village. Hotels and restaurants pepper Rendezvous Mountain, but it’s the world-class ski slopes spread over 2,500 acres and the 400 inches of annual snowfall that make the resort a destination in itself. Not being a snow bunny isn’t an excuse to avoid Jackson Hole. There are still plenty of other activities to enjoy, like exploring Grand Teton National Park, catching a show at the historic Jackson Hole Playhouse and taking a dip in the exquisite Granite Hot Springs.
Asheville, North Carolina
Credit:Sean Pavone/iStock
Asheville marches to the beat of its own drum (literally) and offers no apologies. Littered with breweries, hipster hang-outs, and live music venues, Asheville is a quirky mountain town with a ton of flair. Tucked into the Blue Ridge Mountains, Asheville sits a mere 130 miles northeast of our Helen, Georgia but embodies its own drastically-different character. Scenic drives, hiking and picnicking top our list of favorite pastimes in Asheville. When it’s time to let loose, hit up the downtown for a generous helping of live music bars, worldly cuisine, craft breweries and off-beat entertainment options – dinner and a belly dance, anyone?
“I feel like I’m on the edge of a cliff, and I’m just waiting for a push to send me over.”
Daniella Vega has called every tenant hotline she could find, but she still doesn’t know if she’s on the cusp of being evicted. The 27-year-old artist shared a three-bedroom apartment with in Bushwick with two roommates, but they both moved out due to the pandemic, saddling the freelancer with the $3,200 rent. She’s paid what she can from her savings but now owes two months in back rent, and her landlord has been distressingly unresponsive to recent emails. The fear of eviction, Vega says, is ever present.
“I feel like I’m on the edge of a cliff, and I’m just waiting for a push to send me over,” she says. Vega is among the tens of thousands of New York renters struggling to understand the labyrinth of state orders and court guidance, issued at the beginning of the pandemic and continually updated over the past few months, that are dictating what can already be an opaque evictions process. Now, with housing courts partially reopened in New York City, push may soon come to shove for many renters like Vega who are behind on rent, or who haven’t paid at all since March.
Vega has yet to receive a notice from her landlord, but she is bracing for the possibility that she may be among the proverbial “tidal wave” of new eviction cases — at least 50,000 — that housing advocates estimate New York landlords will file in the coming weeks.
A blanket moratorium on evictions, ordered by Governor Andrew Cuomo, prevented New York renters from losing their homes over the past three months. But as of June 20, protections under that order narrowed. Instead, the current safeguards only apply to tenants who are eligible for unemployment or who have experienced a “financial hardship” related to COVID-19. People who meet those requirements cannot be evicted before August 20. How precisely the courts will decide who is protected under the extended moratorium has created confusion for tenant and landlord attorneys alike.
It’s a determination that could have far-reaching consequences for renters and property owners. But new guidance from the Office of Court Administration has temporarily put a pin in the issue by pausing all new eviction cases and the execution of warrants until at least July 6. Cases can be filed by mail, but those will be adjourned.
The bewildering complexity of the situation has added to the uncertainty for renters and their advocates. For months, tenant-rights groups, including the statewide Housing Justice for All coalition, have urged the governor to extend the blanket eviction moratorium, and on Monday, they took that message to the courts, with hundreds gathering outside of courthouses across the boroughs.
In Brooklyn, protesters railed outside the borough’s civil courts before marching through the streets of Downtown, chanting “Hey, hey! Ho, ho! Evictions have got to go!” Demonstrators in Manhattan participated in a die-in while holding signs that read “People Over Property.” And in Queens and the Bronx, dozens more shouted their outrage over megaphones, calling on Cuomo and Mayor Bill de Blasio to offer greater relief to renters and pleading for the housing courts to remain closed.jason wu, esq. #FreeThemAll4PublicHealth@CriticalRace
We are outside Manhattan Court to tell @NYGovCuomo: No to evictions. No to reopening housing courts. No to profits over people. #EvictionFreeNY and #CancelRent now.
“While the government has told us to stay in our homes, they’re now refusing to protect our ability to actually do that,” Kim Statuto told the crowd outside the Bronx courts. Statuto, a tenant leader with Community Action for Safe Apartments, is on a rent strike in her Claremont Village apartment building, where she has lived with her two adult children — who were both laid off from their jobs in March — for 26 years. “It’s not our fault we can’t pay, but when the courts reopen, we’re the ones that are going to suffer,” Statuto added.
Patrick Tyrrell, a tenant attorney with Mobilization for Justice who joined protesters in Brooklyn, says the issue of restarting evictions has become a “political hot potato” that has led to shaky leadership from the governor and the courts. “No one wants to be the person that says we’re going to evict people,” says Tyrrell. “But at the same time, they’re giving landlords these pinhole opportunities to protect their interests. It shows how politics can create a horrible process.”
That process is one that attorneys are still trying to piece together. Uncertainty lingers over the exact criteria tenants must meet to qualify for protection under the governor’s second executive order.
And that creates a harrowing situation for tenants like Vega who, as a freelancer, wasn’t laid off because of the pandemic, but her income did take a hit with several canceled commissions. “How do I prove that was directly related to the pandemic?” she questions. “It clearly was, but I have no idea how I’d even prove that. It’s terrifying that no one can tell me.”
Vega has already begun reaching out to clients, asking them to pen letters explaining why they reneged on commissions. “I’m trying to arm myself with something,” she says.#CANCELRENT Housing Justice For All@housing4allNY
Landlords who do choose to mail in new eviction cases will also have to provide an affidavit confirming that they have reviewed all existing state and federal restrictions on evictions and believe “in good faith” that the case is “consistent with those proceedings and qualifications,” according to guidance issued by New York State chief administrative judge Lawrence Marks.
But that order, landlord attorneys argue, may be overly burdensome for property owners, who have their own bills to pay, to pursue new cases.
Landlords also run the risk of potentially subjecting themselves to penalties if they wrongfully interpret those directives. Furthermore, they would have to attest that they have reason to believe a tenant is not eligible for unemployment benefits or is not otherwise facing financial hardship as a result of COVID-19 — but again, neither the governor nor the courts have concretely defined what constitutes such a hardship.
“I don’t say this lightly, but the New York City Housing Court has essentially ceased to function,” says landlord attorney Nativ Winiarsky, partner with Kucker Marino Winiarsky & Bittens, LLP.
according to real estate lead generation companies, landlords looking for relief may try to pursue eviction cases in the Supreme Court or through other nonhousing civil-court channels, but that’s a laborious process that could prove too costly for some landlords to pursue. “All of this, I believe, is effectively and severely unfairly impacting a landlord’s property and due-process rights,” adds Winiarsky.
This has left Vega feeling like she’s caught between two worlds, and without greater relief from the state or city, she expects to remain stuck. “Everyone is trying to squeeze whatever they can get out of everyone right now, and that’s because the government has failed us,” says Vega. “We need to cancel rent. We need to cancel mortgages. And if we don’t, I am the one who will suffer.”
Going down an Amazon product rabbit hole, you can find just about anything. There’s some weird stuff out there, like this Nicolas Cage sequin pillow and this wine bra. But deep into the patio and outdoor category, you’ll find one major (OK, huge) item that you probably didn’t know existed on Amazon: tiny houses.
If you can’t get enough of the TV shows that are all about tiny house-living, you can actually live out your own tiny home dreams by purchasing one from Amazon. There’s one caveat however — the tiny houses come as a kit that you then have to build yourself. But if you’ve been looking for your next backyard DIY project, we’ve found it.
While you’d expect tiny homes to be a bit of a splurge purchase, Allwood’s 172-sqaure foot Solvalla Studio got so popular after customers found it on the site in May 2019 that it sold out in less than a week.
Right now, Allwood is the primary brand that’s selling these tiny house kits on Amazon, and unsurprisingly, they aren’t cheap. One the most affordable options is one that’s 113-square feet going for a mere $5,350. There’s one that’s even selling for more than $64,000!
But what’s interesting about these kits if you read the product description is that they can be built by two people in just eight hours. Each “cabin kit” also comes with all the building materials and directions you would need. There’s even a kit that can make a two-room tiny house! Plus, all of the options are less than 250 square feet too, in case your space is limited.
While these tiny cabins could act as little backyard getaway, they don’t come with electricity or utilities, which is an added expense. And if you’re wondering exactly what you could do in this tiny home exactly, well the product description mentions that they are ideal as a “backyard recreation lounge, guest house or even a home office.”
Oddly enough, these tiny homes are one of Amazon’s most sought-out products right now. So if you have the space, the time and the money, it might be worth investing in, to finally live out those tiny house dreams of yours. By the way, if you hop over to this website you’ll find a discount code that may get you a discount.
Below, we’ve rounded up the top six more ~affordable~ options to browse before they might sell out.
NAHB analysis of Census Construction Spending data shows that total private residential construction spending stood at a seasonally adjusted annual rate (SAAR) of $550.3 billion in March. It was up 2.3% in March, after decreasing 4.8% in February. On a year-over-year basis, total private construction spending rose 8.8%.
The monthly gains are largely attributed to the growth of spending on improvements and multifamily construction. Private residential improvements, which include spending on remodeling, major replacement, and additions to owner-occupied housing units, increased to $189.0 billion annual pace in March, up 10.2% over the February estimates. Multifamily construction spending inched up 2% in March, following an increase of 1.2% in February. Spending on single-family construction slipped 2.0% in March, the first dip since July 2019, due to the virus impacts.
The NAHB construction spending index, which is shown in the graph below (the base is January 2000), illustrates the solid growth in single-family construction and home improvement from the second half of 2019 to February 2020, before the COVID-19 hit the U.S. economy. New multifamily construction spending slowed down since August 2019, after the strong growth from 2010 to 2016 and a surge from the late 2018 to early 2019.
Spending on private nonresidential construction declined 1.8 percent over the year to a seasonally adjusted annual rate of $462.3 billion. The annual nonresidential spending decline was mainly due to less spending on the class of lodging ($4.3 billion), followed by educational category ($3.6 billion), and amusement and recreation ($2.3 billion).
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