America’s Housing Supply Crisis:
Is the Suburban Frontier Closing?
NAHB
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.
The American housing market is facing a persistent shortage of inventory. Home prices have reached historic highs, and affordability has declined. Normally, in response to higher prices, housing supply would increase.
EPAB President's Message
Lending Trends
Navigating Mortgage Market Volatility
Victor Robles - EPAB President
As we approach the end of summer, our industry continues to face headwinds in the mortgage sector that impact both homebuyers and builders alike.
Mortgage rates remain stubbornly high compared to recent historical norms, hovering between 6.75% and 7.25% across most conventional loan products.
These elevated rates, driven by ongoing inflationary pressures and uncertainty in the Federal Reserve’s policy, have significantly reduced affordability for many first time buyers and move up homeowners across Texas.
Executive Message
Summer fades away
Strength to face all seasons is in our membership
By Ray Adauto - Executive Vice President, EPAB
The EPAB is nothing without members. This is the biggest secret to an association, a secret that at times challenges even the most involved members. What we are is pretty basic, a group of liked minded people in a particular interest in residential construction.
I get calls and emails asking about whether or not someone is a member, but also from real estate agents trying to figure out the same thing. What does this have in common? I think it is clear that membership brings up confidence with consumers and professionals. This is one reason why membership is important, but not the only reason. What surprises me is that even long-time members, both builder and associate, do not proclaim or advertise membership. Do yourself a favor. Let people know. It’ll place your company in a professional class and let people know you care about your industry.
Summer is over. Too quick, but then in my day the summer started in May and ended officially at the Seminarian Bazaar on Labor Day. Back then my dad and mom would schedule a two week vacation to visit somewhere, normally California. Loved Disneyland and Knots, the beach, and maybe even Catalina Island. Most of all we got to visit family. It wasn’t as cool back then, but now I wish I could see them again. Time has taken so many, and those left wouldn’t know we’re cousins if their life depended on it. So as we start Fall, let me raise a toast to those booklets of E tickets, the wowzer of Huntington Beach, and the warmest hearts I will ever remember. For you youngsters, you’ll treasure times you have now, if you love life. So grab the brass ring, study hard, work hard. It comes to an end too quickly.
Is U.S. Lumber Self-Reliance Possible?
By Jesse Wade, June 2025
Lumber cost uncertainty has risen from the start of the year, driven in part by potential higher tariffs, particularly on Canadian softwood lumber. Despite the continued use and threat of tariffs, U.S. sawmill and wood preservation firms have not increased production to a level that replaces imports. In fact, utilization rates continue to fall, meaning they have the capacity to produce more lumber but are simply not operating at that level.
As these firms produce at lower levels, their employment has fallen over the past few quarters. At the same time, reduced foreign competition and artificially higher prices have lessened the incentive for firms to expand output, even as demand remains high. As a result, U.S. mills remain unable to meet the nation’s full lumber consumption needs.
Private Residential Construction Spending Dips
NAHB
Private residential construction spending fell by 0.7% in June, marking the sixth straight month of decreases. This decline was primarily driven by reduced spending on single-family construction. Compared to a year ago, total spending was down 6.2%, as the housing sector continues to navigate the economic uncertainty stemming from ongoing tariff concerns and elevated mortgage rates.
According to the latest U.S. Census Construction Spending data, single-family construction spending declined by 1.8% in June. This decrease aligns with the weak single-family starts in June and the third lowest reading of NAHB/Wells Fargo Housing Market Index (HMI) since 2012. Compared to a year ago, single-family construction spending decreased by 5.3%. Meanwhile, multifamily construction spending stayed flat for the month but continued to follow the downward trend that began in mid-2023.