Page 17 - Green Builder Nov-Dec 2020 Issue

THE STATE OF

SUSTAINABLE
Home Prices Keep Rising BUILDING 2021

Recession

340,000

320,000
300,000
280,000
DOLLARS 260,000

240,000
220,000

210,000
180,000
160,000
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Upward bound. Median home prices nationwide have moved steadily upward in 2020, reaching the second-highest level seen since 2018.
CREDIT: FRED ECONOMIC RESEARCH ST. LOUIS
ECONOMIC STRENGTH
IN HARD TIMES. Rent Price
Research conducted by Green Builder Media Buying Beats Renting: $1657 + 2.2% YoY
backs up Santarelli’s assertion. According
to COGNITION Smart Data, GBM’s suite of By the Numbers
market intelligence services, the housing 1500
market will continue unprecedented growth High rents, coupled with long-term isolation 1000
even in these uncertain times.
As reported by the U.S. Census Bureau and working from home, have made 500
and the U.S. Department of Housing and homeownership more attractive than ever.
Urban Development (HUD), the growth in Jul 2019 Jan 2020 Jul 2020
single-family starts throughout the sum- ENTING A HOME isn’t what it used to the need for people Over the top. On a national
mer continued into fall. The seasonally be. Long seen as the option for people to work from home scale, the median monthly
adjusted annual rate reached 1.42 million in who can’t afford to buy their residence, during the pandemic. cost for a rental is $1,657,
September, up from 1.39 million in August, R it has, in recent years, become a “The rapid uptick in and the median monthly
and 1.27 million in September 2019. These springboard for home ownership. telecommunications home mortgage is $1,556.
are the highest production rates since this With the arrival of the coronavirus—and the and remote working That means that, on average,
past February.‘Single-family permits con- resulting fallout—buying a house seems like the has made it possible it costs about $101 less to
tinue to rise as well, up more than seven only sensible choice. According to a report in for people to move own a home than to rent.
percent on a year-to-date basis. Mansion Global, the coronavirus pandemic has away from congested CREDIT: COGNITION SMART DATA
Meanwhile, the national median home many Americans rethinking the kind of lifestyle urban markets to lower priced, less dense areas,”
sale price hit $324,900 for Q3 2020, up they want. “Apartment living in central, densely notes COGNITION Smart Data. “Homeowners can
slightly from $322,600 in Q2, but down a populated urban areas,” MG notes, “is losing get more bang for their buck while still maintaining
bit from $329,000 in Q1. The •rst quarter’s its appeal as residents are subject to building their jobs.”
numbers, however, are pre-COVID and were restrictions and risk coming into contact with There’s a financial element, too. The median 30-
the best since Q3 2018. That makes the most- people infected by the virus.” year home mortgage payment for a three-bedroom,
recent quarter’s totals even more impressive, A Harris Poll from this past summer indicates that two-bath home is $1,556 per month, according
according to HUD. nearly one-third of Americans are considering moving to the U.S. Census Bureau. By comparison, the
And, inventory continues to dwindle. to less densely populated areas in the wake of the median monthly rental cost is $1,657. And in
HUD’s report on September housing sales pandemic. That has resulted in a residential shift that investment terms, each house payment offers a
notes that the current supply of on-mar- has helped push up real estate sales and home prices. future return. Money for rent is gone with every
ket properties would last 3.3 months, the Suburban life has also gained popularity due to monthly check.

www.greenbuildermedia.com November/December 2020 GREEN BUILDER 15

12-28, 32-36 GB 1120 State of the Industry.indd 15 12/10/20 6:49 PM