NAHB CEO says housing is moving forward
Jerry Howard, CEO of the National Association of Home Builders said new residential construction growing at a strong pace, partially due to an urban exit.
“It’s been a tough year,” Howard said during the virtual 2020 ProDealer Industry Summit. “Everything was lining up no matter where we talked to our builders.”
But then the COVID-19 crisis hit in March, resulting in a temporary stall for housing production. Howard says what “what made all the difference in the world” for NAHB members and pro dealers was the industry receiving an essential industry designation in many regions. The CEO served on President Trump’s special committee for opening the economy.
Although the market might not be as strong as its pace prior to the pandemic, momentum has been regained.
Jerry Howard, CEO of the National Association of Home Builders said new residential construction growing at a strong pace, partially due to an urban exit.
“It’s been a tough year,” Howard said during the virtual 2020 ProDealer Industry Summit. “Everything was lining up no matter where we talked to our builders.”
But then the COVID-19 crisis hit in March, resulting in a temporary stall for housing production. Howard says what “what made all the difference in the world” for NAHB members and pro dealers was the industry receiving an essential industry designation in many regions. The CEO served on President Trump’s special committee for opening the economy.
Although the market might not be as strong as its pace prior to the pandemic, momentum has been regained.
“The housing markets are strong virtually everywhere in the country with the exception of those areas where it was weakest to begin with,” Howard says. “The areas with the most regulations, the areas with the least blanched economies, and the areas where they were not pro-growth to begin with.”
Howard singled out the New York City metro market, especially the suburbs of Connecticut and New Jersey, which have traditionally been some of the industry’s “most dead markets.”
“Today they are two of the hottest markets in America right now,” Howard said.
And while California might be lackluster, hampered by both COVID-19 and wildfires, Idaho, Nevada, and Arizona “are going great guns again.” according to Howard.
Part of the equation to housing success in surging markets is that they are not urban areas. The combination of civil unrest and the COVID-19 crisis continues to push Americans out of cities in less dense areas.
“A great many people have learned they can work remotely and they don’t have to live where they work,” Howard explained. “People are leaving cities in droves.”
The executive also shared the story of an Idaho home builder who received a phone call from a Los Angeles resident looking to have a house built with the next six months. The home buyer’s primary request was that the house had to be wired well enough for consistent internet access for working remotely.
“Stories like that are coming to fruition all over the country,” Howard said while also pointing to rising home building in the sleep towns of Vermont; another non-high-density region.
After being quarantined in small apartments for months, and witnessing urban riots, potential homeowners also want enough room to stretch out and be safe. That includes a trend toward bigger homes that host home offices, room for exercise equipment, and a backyard.
“For the first time in years you are seeing demand for bigger houses,” Howard said.
Because the housing market never kicked into high capacity following the great recession, Howard expects demand for single-family homes to continue in the third and fourth quarter of 2020 while continuing into 2021. Multi-family demand is declining, however.
“Housing still continues to go forward,” Howard said. “Our housing opportunity index is at an all-time high. Builders are still very optimistic, not only for the duration of this year but into next year.”
