The Headlines: September 14, 2017

Ten Home Building industry stories we have read recently:

  • New FHA multifamily mortgage insurance applications halted in Texas disaster areas (expect delays in processing applications across the country). NAHBNow
  • How local housing regulations smother the U.S. economy (and affordable housing). New York Times.
  • Co-borrowing to afford a home is gaining popularity.  Who’s doing it and why?  MarketWatch.
  • Hurricanes Irma, Harvey boost call for flood insurance (renewal of the program).  Orlando Sentinel.
  • 70 percent of Harvey residential flood damage not covered by insurance.  National Mortgage News.
  • A devastating hurricane season exposes America’s flood insurance problem (Senator Tim Scott is quoted).  Time.
  • Labor shortage could hamper Harvey reconstruction.  Houston Chronicle.
  • The last big piece of unfinished business from the Great Recession (Fannie and Freddie).  The Washington Post.  
  • Top ten sources of softwood lumber imports (in short, Canada laps the field).  Eye on Housing.
  • Baby Boomers who refuse to sell are dominating the housing market (55 percent of owner-occupied housing is owned by people 55 years and older, the highest in history).  Bloomberg.

Did you know?  25 percent of all flood insurance policies in the U.S. are written in the state of Florida.

September 14, 2017.

The Headlines: July 21, 2017

Ten Home Building industry stories we have read recently:

  • Jimmy Carter: Trump is right. Canada’s lumber trade practices are unfair. The Washington Post.
  • Builders, how do you define substantial completion for your subcontractors? Professional Warranty Service Corporation blog.
  • Deitz: slow but steady growth for housing. NAHBNow.
  • Home builders can’t find enough workers. CNN Money. (quoted: NAHB CEO Jerry Howard)
  • Real estate’s new normal: homeowners staying put. New York Times. (good news for remodelers?)
  • How tales of “flippers” led to a housing bubble. New York Times.
  • Former Chief Just offers stark reminder of South Carolina Construction Law. Midlandsbiz.
  • Worker-friendly rules scrapped by Labor Dept. USA Today.
  • Who’s powering the housing market? Surprise! It’s Millennials. NBC News.
  • Home building slowed as cities try to tame growth. USA Today.

July 21, 2017

Rates from the National Flood Insurance Program May Rise

One property in Mississippi, valued at $183,000, was flooded 15 times over a 10 year period and cost the National Flood Insurance Program $1.47 million. Another property in Texas, valued at $116,000, has amassed $2 million in claims, and counting.

These and other examples are why the National Flood Insurance Program is on the verge of insolvency, and why Congress authorized the program to increase premiums by as much at 25 percent a year over the next five years for second homes and homes in flood-prone areas. The objective is to increase premiums so that they reflect actual risk and perhaps discourage building in hazardous areas.

Click here to read about the premium changes in the New York Times.