Housing Research, Investment Services, M&A Advisory | Zelman & Associates

Advertising Expense Across Homebuilding Industry Plunges; A Secular Shift or Cyclical Benefit?

March 16, 2022 by Alan Ratner

In 2021, SG&A expenses across the public homebuilding industry equaled just 8.8% of sales, down 90 basis points year over year to the lowest level on record. For comparison, during the previous boom period in the mid-2000s, SG&A expenses troughed at 10.7% of revenue, while the average ratio since 2000 has been 11.8%...

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homebuilding housing new home sales sg&a

Are Housing Demand and Supply Set on Diverging Courses?

October 21, 2021 by Dennis McGill

One of the critical conclusions expressed in our recent thematic demographic report, Cradle to Grave, was that “the seeds of oversupply are being planted.” In an environment where the widely-accepted belief is that there is a housing shortage, the statement has naturally drawn skepticism.

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apartments build-for-rent demographics homebuilding housing starts macro housing supply

Homebuilding Activity Slowed in February but Is Weather to Blame?

April 08, 2021 by Kevin Kaczmarek

February single-family housing starts as reported by the Census Bureau decelerated faster than expected, leaving them at the lowest seasonally-adjusted level since August 2020. As we noted the week prior to the release in our latest Homebuilding Survey, extreme weather conditions, especially in Texas...

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homebuilding housing starts macro housing

Immigration Policy Likely to be a Net Positive for Housing Under Biden

December 07, 2020 by Ivy Zelman, Dennis McGill & Alan Ratner

With President-elect Joe Biden set to occupy the White House on January 20th, there has been a lot of discussion about the potential impact of tax reform, student debt forgiveness and a proposed homebuyer tax credit on the housing market. Ultimately, a lot will depend upon the outcome of...

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demographics homebuilding homeownership household formation macro housing

What a Democratic Sweep Could Mean For Housing?

October 29, 2020 by Ivy Zelman

As we enter the final days prior to the election, I can’t help ponder what the outcome of a Democratic sweep could mean for housing and our country, which appears to be a real potential outcome. To stay away from my political views, I’ll focus on what a sweep would mean specifically for the housing market...

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existing home sales homebuilding household formation macro housing mortgage new home sales

Across-the-Board Upside for Public Homebuilder Third Quarter Key Metrics

November 15, 2019 by Zelman & Associates

So far, 14 public homebuilders included in our equity research coverage have reported calendar third quarter financial results. These builders generated over $20 billion ...

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homebuilding stocks

Residential Construction Warning of Nearing Recession?

August 23, 2019 by Zelman & Associates

Through the first seven months of 2019, residential construction for single-family and multi-family projects has trailed the prior-year period across the board. Specifically, single-family permits and starts are both down 3% while multi-family ...

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apartments homebuilding macro housing

Single-Family Built-to-Rent Likely Here to Stay

April 19, 2019 by Zelman & Associates

Every month, we track interest in built-to-rent construction, along with other acquisition channels, in our proprietary survey of single-family rental operators. Over the last year, interest in partnering with homebuilders on built-to-rent ...

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homebuilding institutional investors single-family rental

The Percentage of Construction Workers Saying “I Quit” a Sign of the Times

April 05, 2019 by Zelman & Associates

In 2018, the national unemployment rate averaged 3.9%, the first year below 4.0% since 1969, which has been a positive for wage growth and potential entry-level homebuyers. However, the other side of that coin has been a shortage of labor in ...

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homebuilding macro housing

Is Substantial Drop in Lumber Prices a Signal for Single-Family Housing?

January 11, 2019 by Zelman & Associates

According to Random Lengths, framing lumber prices in December were down 22% year over year and 41% from the monthly peak in June. Similarly, its structural panel composite index declined 14% year over year and stood 35% lower than the near-term ...

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homebuilding macro housing