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» VISIT US ONLINE @ DSNEWS.COM 29 SINGLE-FAMILY HOUSING STARTS SPIKE Dodge Data and Analytics has released its latest data on construction starts, showcasing stats for the month of January 2018. Among the noteworthy data points: a spike-in single- family housing starts in the Northeast region, even as the rest of the country saw either a decrease or held steady month-over-month. e total value of new construction starts in January 2018 decreased 2 percent to a seasonally adjusted annual rate of $725.9 billion, according to Dodge's data. is follows a 13 percent hike in December. On an unadjusted basis, total construction starts in January amounted to $52.2 billion, down 7 percent year-over-year. On a 12-month moving total basis, total construction starts in the 12 months ending January 2018 were up 2 percent from the 12 months ending January 2017. Residential building as a whole climbed 7 percent in January, assisted by an uptick in multifamily housing starts after three straight months of declines. Single-family housing in January declined 3 percent, "settling back after the modest gains reported during the previous five months." During January, single-family housing was down 11 percent in the West, down 2 percent in the South Central region, down 1 percent in the South Atlantic, and unchanged in the Midwest. However, the Northeast saw a 9 percent increase in residential building. is could bode well for investors looking for single-family rental opportunities in the Northeastern United States, as well as for inventory shortages in the region. Residential building rose one percent year-over-year, with single-family housing up three percent while multifamily housing slipped two percent. e Northeast was down 36 percent year-over-year with regard to total construction starts. e West was down 10 percent, the South Central region slipped 9 percent, the South Atlantic held steady, and the Midwest climbed by 42 percent. "Although the expansion for the construction industry lost some momentum during 2017, on a broad level it can be characterized as deceleration as opposed to decline," said Robert A. Murray, Chief Economist for Dodge Data & Analytics. "January's level of activity, which held close to last year's mid-range, is consistent with the picture of a decelerating expansion. e factors affecting construction activity going forward in 2018 have become more varied. Some dampening may come from higher material prices and tight labor markets, yet while interest rates are rising the increases are expected to stay moderate this year." HISPANIC HOMEOWNERSHIP INCREASING Homeownership in the Hispanic population increased for the third consecutive year according to a joint report by e Hispanic Wealth Project, and the National Association of Hispanic Real Estate Professionals (NAHREP). e report analyzes Hispanic labor force participation rate, household formation rate, median income and aspirational interest, to evaluate and determine the factors affecting homeownership for this group. Attributing this growth to increasing population, growth in jobs, and household formations, the report found that Hispanics increased their rate of homeownership from 46 percent to 46.2 percent, with a net increase of 167,000 new owner households. "We see from the report's data the strong enthusiasm for homeownership within the Hispanic community," said Daisy Lopez-Cid, President, NAHREP. "With a growing Hispanic population and the highest rate of workforce participation, Hispanics are expected to drive growth in the housing market for decades." According to the report, overall U.S. homeownership rates increased from 63.4 percent in 2016 to 63.9 percent in 2017, with over 1.1 million owner households for all population segments. Of these, Hispanics accounted for 15 percent of the net ownership gains. In terms of household formations, the report noted that Hispanics accounted for 265,000 new household formations or, 28.6 percent of total U.S. household formations representing a modest fall from 340,000 household formations by Hispanics in 2016. Despite these gains, three main factors slowed the growth of homeownership among Hispanics, the report indicated. ey included a shortage of housing inventory, natural disasters, and uncertain immigration policy. Giving examples of areas and metros that were heavily populated by Hispanics, the report indicated that affordable housing remained the main concern for the group. e report said that in Las Vegas new home starts were up 9 percent in 2017 but only 21 percent of those were under $300,000, as compared to 42 percent in 2016. San Diego began 2017 with a surge in new homes priced at $1 million and more even as this metro continued to experience severe supply constraints at the affordable price points. Giving the example of Houston, the report said that Houston saw growth with new home starts up 5.8 percent; however, its greatest increase was for starts above $300,000, which increased by 11.1 percent. "In terms of household formations, the report noted that Hispanics accounted for 265,000 new household formations, or 28.6 percent of total U.S. household formations, representing a modest fall from 340,000 household formations by Hispanics in 2016."

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