Consumer confidence continued to rise in September, after a big increase in August. Currently, consumers are quite optimistic about both the current situation and the near-term outlook.

The Consumer Confidence Index, reported by the Conference Board, increased to 138.4 in September, from 134.7 in August. It has surpassed the 2007 peak of 111.9 and spiked to the highest level since October 2000. Both the present situation index and the expectations index rose in September. The present situation index rose by 0.3 point from 172.8 to 173.1 and the expectations index jumped by 6.0 points from 109.3 to 115.3. The September increase in consumer confidence was mainly generated by an increase in the expectations index.

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Three-fourths of the total cost of building a typical home goes to subcontractors. So as they get harder to find, it’s getting especially hard for projects to stay on schedule and on budget.

Single-family builders who responded to a recent NAHB survey listed which workers they are struggling the most to find. Topping the list: shortages of rough carpenters were reported by 90% of builders — the highest-ever portion for any occupation in residential construction in the survey’s history.

NAHB economist Paul Emrath wrote about the findings in Eye On Housing and offered possible explanations for the severe shortage of subcontractors: One is that workers who were laid off during the housing downturn and subsequently started their own businesses have since returned to work for larger companies.

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A recent NAHB survey found that over the last year, the average cost of builder-employed laborers increased 5.2% and the cost of subcontractor work rose 7.2%.

Comparing those numbers to 2018’s overall inflation (just 2.9%) helps explain why the pace of residential construction continues to be flat: The cost increases are not only resulting in higher home prices for buyers, but a growing number of builders are feeling the pinch as well.

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Layers of excessive regulation translate into higher rents, reduced affordability for consumers and on average, account for almost one-third of a multifamily project’s development and building costs, the National Association of Home Builders (NAHB) told Congress today.

Testifying on behalf of NAHB before the House Financial Services Subcommittee on Housing and Insurance, Steve Lawson, chairman of The Lawson Companies based in Virginia, said that overregulation of the housing industry is felt at every phase of the building process.

“It results from local, state and federal mandates,” said Lawson. “It includes the cost of applying for zoning and subdivision approval, environmental mitigation, and permit, hook-up, impact and other government fees paid by the builder. In many cases, these projects become financially infeasible and, therefore, are not built.”

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Special Registration Discounts Offered Through September

The National Association of Home Builders (NAHB) officially opened online registration today for the 2019 NAHB International Builders’ Show® (IBS), the largest annual light construction trade show in the world.

Celebrating its 75th anniversary, the show will return to the Las Vegas Convention Center, Feb. 19-21, after a two-year stint in Orlando, Fla.

The 2019 IBS will again co-locate with the National Kitchen & Bath Association’s (NKBA) Kitchen & Bath Industry Show® (KBIS) for the 6th annual Design & Construction Week® (DCW). The two shows are expected to host more than 2,000 exhibiting brands spanning over a million net square feet of exhibit space, for the largest annual gathering of the residential design and construction industry.

“As we kick off our 75th anniversary of the International Builders’ Show, we are thrilled to bring even more exciting offerings to our attendees than ever before,” said NAHB Chairman Randy Noel, a custom home builder from LaPlace, La. “There is truly nowhere else that you can find such an array of innovative products, education sessions, special events and networking opportunities all in one place. This is the biggest show for the housing industry and is not one to be missed.”

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