All articles tagged with #housing construction
Facing persistent high housing costs and political pressure, the Trump administration is weighing a broad set of federal options—ranging from boosting housing construction and easing mortgage fees to pressuring the Fed for rate cuts and nudging Fannie Mae/Freddie Mac to buy more bonds—though many proposals require congressional action and internal deliberations show splits about timing and impact.
Higher tariffs on Canadian lumber aim to boost US domestic forestry, but long-term investment is hindered by species differences, higher costs, and cyclical housing demand, making tariffs alone insufficient for sustainable growth in US timber industry.
The Austin City Council has voted to allow the construction of more homes on single-family lots in an effort to address the housing affordability crisis. The change will permit up to three housing units, such as duplexes and triplexes, on almost any lot in the city where single-family homes are currently allowed. Critics argue that denser housing will negatively impact existing neighborhoods and displace low-income residents without providing affordable housing. This decision is part of a broader push by Austin officials to relax city rules and stimulate more housing construction.
A report has found that San Francisco has the most barriers to housing construction in California, exacerbating the state's homelessness crisis and making it difficult for workers to afford living in the city. The city's slow approval process, allowing anyone to object to projects even if they meet requirements, and excessive environmental reviews contribute to delays and increased costs. Governor Newsom's housing division has called on San Francisco to improve its practices and has specified 18 actions the city must take, including expediting building permits and eliminating the right of individuals to block compliant projects. If the city does not change, the state could withhold funding and revoke local control over development.
California Governor Gavin Newsom has signed AB 1307, a measure aimed at removing barriers to housing construction by addressing the misuse of the California Environmental Quality Act (CEQA). The legislation, introduced by Assemblymember Buffy Wicks, allows universities to develop affordable housing without considering residential noise as a significant environmental effect under CEQA. It also eliminates the requirement for public universities to consider alternative locations for housing projects. The move comes in response to a court ruling that blocked UC Berkeley's housing development due to noise impacts. Governor Newsom and legislators are committed to making it easier to build the housing the state desperately needs.
Despite a slowdown in hiring across various sectors, the housing construction industry continues to experience strong employment growth due to increasing demand for new housing. Low mortgage rates have led potential sellers to stay put, further driving the need for new construction.
US manufacturing activity continued to decline in June, reaching levels last seen during the initial wave of the COVID-19 pandemic. The Institute for Supply Management (ISM) survey showed that factories resorted to layoffs as shrinking activity persisted. However, price pressures at the factory gate remained subdued, providing a silver lining for the economy. The ISM's manufacturing PMI dropped to its lowest reading since May 2020, marking the eighth consecutive month of contraction. While some industries, such as transportation equipment, showed growth, overall weak demand and cautious inventory management are dampening the sector. On the other hand, housing construction rebounded in May, contributing to an increase in overall construction spending.
Arizona has announced restrictions on new housing construction in the Phoenix area that depends on groundwater due to a multi-decade drought and diminishing water supplies. The decision would allow developers to continue building in the affected areas but would require them to find alternatives to groundwater supplies. The state's restriction could prompt developers to seek out other water sources, such as purchasing access to river water from farmers. Arizona has endured two rounds of mandatory water cuts from the Colorado River over the past two years.
Arizona has announced that there is not enough groundwater to support all the future housing construction that has already been approved in the Phoenix area, and will stop developers from building some new subdivisions. This marks the beginning of the end to the explosive development that has made the Phoenix metropolitan region the fastest growing in the country. The decision means cities and developers must look for alternative sources of water to support future development, which is likely to rattle the real estate market in Arizona, making homes more expensive and threatening the relatively low housing costs that had made the region a magnet for people from across the country.