News and Updates

There is nearly an $8,000 difference between what residents of the state with the highest property taxes pay compared to those who live in the state with the lowest rate.

NAHB analysis of data from the 2017 American Community Survey and U.S. Census Bureau shows that in 2017, New Jersey continued its perennial distinction as the state with the highest average annual tax bill per home owner. Garden State home owners paid an average of $8,485 in real estate taxes in 2017.

At the opposite end of the spectrum, Alabama ranked 50th among home owners in average  real estate tax paid per year. There, the average real estate tax bill totaled just $678.

The top five states with the highest average annual property taxes are all located in the Northeast:

The states with the lowest average annual property taxes are primarily located in the South:

NAHB economist David Logan looks at the national picture and provides further analysis in this Eye on Housing blog post.

Find out where your state stands on the list.

The Labor Department has issued a proposed new overtime rule that would raise the overtime salary limit from $23,660 to $35,308.

This means that any professional, administrative and executive employees making under $35,308 would be due time and a half if they work more than 40 hours a week.

However, this proposal has not yet been published in the Federal Register and could be subject to modifications. Once published, NAHB will review the proposed rulemaking and submit comments on the proposal.

NAHB opposed the Obama-era rule that would have raised the overtime threshold to $47,476 because such a drastic jump would result in real hardship for the nation’s small business community. We joined other business groups in filing a lawsuit to challenge this rule. As a result of these efforts, the rule was never implemented because a judge issued a preliminary injunction against it.

Secretary of Labor Alexander Acosta testified at his Senate confirmation hearing two years ago that he would prefer a more modest salary threshold for overtime pay than previously proposed. He suggested a threshold of around $33,000, which would be more in line with inflation.

For more information, contact Felicia Watson at 800-368-5242 x8229.

Sales of newly built, single-family homes rose to a seasonally adjusted annual rate of 657,000 units in November after an upwardly revised October report, according to newly released data by HUD and the U.S. Census Bureau. This is the highest sales pace since March 2018. However, on a year-to-date basis, sales are down 7.7% from this time in 2017.

The sales report was delayed due to the partial government shutdown.

“The sales increase was fueled by a notable uptick in homes sold at the affordable end of the market,” said NAHB Chairman Randy Noel. “There is clearly a demand for new home homes even as builders continue to grapple with supply-side challenges, including shortages of lots and labor and higher building material costs stemming from tariffs.”

“Solid job growth and growing household formations should support future demand for housing even as builders continue to address mounting affordability woes,” said NAHB Chief Economist Robert Dietz. “Builders are doing all they can to hold the line on costs to meet this demand, particularly at the entry-level market.”

A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the November reading of 657,000 units is the number of homes that would sell if this pace continued for the next 12 months.

The inventory of new homes for sale rose to 330,000 in November. The median sales price fell to $302,400, as the market has shifted to lower-cost houses.

Regionally, on a monthly basis, new home sales jumped 100% in the Northeast, 30.5% in the Midwest and 20.6% in the South. Sales fell 5.9% in the West.

NAHB Chief Economist Robert Dietz provides more analysis in this Eye on Housing blog post.

The Federal Reserve ended its two-day meeting of its policymaking committee by announcing it would hold short-term interest rates steady and signaling that it will carefully evaluate future economic conditions before considering another rate hike.

NAHB Chief Economist Robert Dietz provides the following analysis of the Fed’s decision and how it could affect the housing market in an Eye on Housing post:

“As expected, the Federal Reserve’s monetary policy body, the Federal Open Market Committee, unanimously held steady the federal funds top rate at 2.5%. The Fed’s January statement was consistent with recent policymakers comments suggesting a more flexible stance toward monetary policy at the end of last year and the start of 2019.

“In particular, the statement indicated that the Fed will ‘be patient as it determines what future adjustments to the target range for the federal funds rate may be appropriate to support these outcomes.’ This is a decidely more dovish stance for the Fed relative to commentary from the Fall of 2018, reflecting anchored inflation expectations and economic softness in some sectors, including housing, as illustrated by today’s December pending home sales data from the National Association of Realtors.

“Moreover, the Fed, in an accompanying statement, noted that it could modify its ongoing balance sheet reduction, which reduces its net holding of Treasury bonds and mortgage-backed securities, leading to higher rates (quantitative tightening), if economic conditions warrant such a change. This revision notes that the Fed would ‘be prepared to use its full range of tools, including altering the size and composition of its balance sheet, if future economic conditions were to warrant a more accommodative monetary policy than can be achieved solely by reducing the federal funds rate.’

“In combination, these changes to the Fed’s monetary policy stance are more favorable for housing market conditions in 2019, which are currently challenged by growing concerns over housing affordability and sluggish growth for home building.