By Robin Rothstein, Forbes.com
The spring home-buying season died on the vine. However, there are some signs that sales activity could heat up this summer. Here’s a look at what’s happening in the housing market.
Existing-Home Sales
Existing-home sales, which include completed transactions of single-family homes, townhomes, condominiums and co-ops, struggled to eke out a positive reading amid steep mortgage rates, record-high home prices and economic jitters.
The National Association of Realtors (NAR) reported that monthly sales rose just 0.8% in May, putting the seasonally adjusted annual sales rate at 4.03 million, up slightly from 4 million in April. Year-over-year sales slid 0.7%.
While sales remained anemic, inventory maintained its upward trajectory, reaching its highest level in five years.
EPAB President's Message
2025 Pushes Along:
Builders face challenges, Texas rebuilds
Victor Robles - EPAB President
As we move deeper into the year, Texas homebuilders continue to face a complex mix of opportunities and challenges that are shaping our market and our mission.
One of the most pressing topics at the moment is the state of the mortgage landscape. While interest rates have stabilized somewhat, affordability remains a key concern across Texas. Many buyers, especially first-time homeowners, are still struggling with elevated monthly payments due to higher borrowing costs and insurance premiums.
Executive Message
Floods devastate families
By Ray Adauto - Executive Vice President, EPAB
The news from central Texas and Southern New Mexico has been devastating. The Guadalupe River and the floods from rain in Ruidoso have hit communities we know well. The massive water surge in Kerr County has killed over a hundred people as of printing, and with over one hundred and seventy people missing, this tragedy may be one of the worst ever in that area. The area is known as “flash flood alley,” which is so dangerous that those living there can recall other floods in the past. News reports don’t tell you the whole picture, but even those reports contain chilling stories of death and survival.
July Fourth is a celebration day, and many folks traveled to camp near or at the river. “As a kid, I can tell you a lot of stories about the camps we’re hearing about,” life member John Chaney told us. “Those kids who were at Camp Mystic really had no chance with that raging river,” he continued. It will take years to rebuild this area, and helping with that will be our fellow Texas Association of Builders members. The state association has made the Texas Builders Foundation a collection point for monetary donations.
Ruidoso’s flooding happened at an unfortunate time, coinciding with the floods in Texas. The severity of the Ruidoso floods was equally devastating, with the loss of life, including two children from one family, and an unknown number of deaths as time moves on. The seriousness of the economic loss comes after other disasters, including fires and more. Ruidoso is home to many, but like Kerrville, the temporary or vacation population has added its own problems for permanent residents. Ruidoso also endures being second to the national or worldwide news. That unfortunately also means the flow of money is focused on Central Texas when it comes to financial attention.
Our friends and families that own property in Ruidoso need help, and we’ll share that info as we get it. But one thing we know is that “things” are replaceable; lives are not. Our prayers go out to all who have suffered from these events, and we hope their lives will find solace in the help they receive.
Shrinking Lots: Spec Building New Norm
By Natalia Siniavskaia
The share of smaller lots remained record high in 2024, with two out of three new single-family detached homes sold occupying lots under 9,000 square feet (1/5 of an acre or less). Moreover, a high share of 40% occupied lots under 7,000 square feet (or less than 1/6 of an acre). These shares match the record highs established a year earlier, according to the latest Survey of Construction (SOC). Analysis of a quarter-century of SOC data reveals stark changes in the lot size distribution and documents a dramatic shift towards more compact building over the last two decades.
In 1999, when the Census Bureau started tracking these series, less than half (46%) of new for-sale single-family detached homes occupied lots under 9,000 square feet. The share of these smaller lots fluctuated around 48%, never crossing the 50% mark, until 2011. A shift in speculatively built (or spec) home building towards smaller lots first became noticeable during the anemic housing recovery that followed the Great Recession. Over that period, the share of spec homes built on lots smaller than or equal to one-fifth of an acre rose rapidly, from 47% in 2010 to 61% right before the pandemic.
TECH: Home Building, the Social Media Influencer
TikTok may be best associated with the latest dance crazes and viral challenges, but the social media platform with more than 1.5 billion monthly users could be a boon in helping the construction industry find its next generation of skilled laborers.
In fact, many in construction are using the platform to provide younger generations with an informative perspective on careers in the industry and using influencers to help with recruiting. This movement has become a significant influence on Gen Z’s career choices, inspiring many to consider construction as a viable and rewarding profession.
Chelsea Fenton (@thatunionlaborer), a Massachusetts-based TikToker who has worked with The Laborers’ International Union of North America doing concrete, underground utilities and demolition work for more than 13 years, posted her first TikTok after seeing a Facebook reel of a female electrician and noticing the hundreds of comments underneath the post.