Issue link: https://read.dmtmag.com/i/418584
50 • DECEMBER 2014 • WORLD FENCE NEWS
NAHB reports housing industry
inching toward full recovery
Markets in 59 of the approxi-
mately 350 metro areas nationwide
returned to or exceeded their last nor-
mal levels of economic and housing
activity in the third quarter of 2014,
according to the latest National Asso-
ciation of Home Builders/First Amer-
ican Leading Markets Index (LMI).
This represents a year-over-year
net gain of seven markets. The index's
nationwide score moved up slightly
from .89 in the second quarter to .90,
meaning that based on current permit,
price and employment data, the na-
tionwide average is running at 90 per-
cent of normal economic and housing
activity.
Meanwhile, 66 percent of markets
have shown an improvement year-
over-year.
"The markets are recovering at
a slow, gradual pace," said NAHB
chairman Kevin Kelly, a home builder
and developer from Wilmington, Del.
"Continued job creation, econom-
ic growth and increasing consumer
confidence should help spur pent-up
demand for housing." Baton Rouge,
La. continues to top the list of major
metros on the LMI, with a score of
1.39 – or 39 percent better than its last
normal market level.
Other major metros leading the
list include Austin, Tex.; Honolulu;
Oklahoma City and Houston. Round-
ing out the top 10 are Los Angeles;
San Jose, Calif.; Salt Lake City; New
Orleans and Charleston, S.C. — all of
whose LMI scores indicate that their
market activity now equals or exceeds
previous norms.
"An uptick in the number of sin-
gle-family permits, which is current-
ly only 44 percent of normal activity,
is the key to a full-fledged housing
recovery," said NAHB chief econo-
mist David Crowe. "In the 17 metros
where permits are at or above normal,
the overall index shows that these
markets have fully recovered."
"Nearly half of all the markets
on the Leading Markets Index are up
since August, which is a good sign
that the ongoing housing recovery
will keep moving forward in 2015,"
said Kurt Pfotenhauer, vice-chair-
man of First American Title Insurance
Company, which co-sponsors the LMI
report.
Looking at smaller metros, both
Midland and Odessa, Tex. boast
LMI scores of 2.0 or better, meaning
their markets are now at double their
strength prior to the recession.
Also leading the list of smaller
metros are Grand Forks, N.D; Bis-
marck, N.D.; and Casper, Wyo., re-
spectively.
The LMI shifts the focus from
identifying markets that have recently
begun to recover, which was the aim
of a previous gauge known as the Im-
proving Markets Index, to identifying
those areas that are now approaching
and exceeding their previous normal
levels of economic and housing activ-
ity.
More than 350 metro areas are
scored by taking their average permit,
price and employment levels for the
past 12 months and dividing each by
their annual average over the last peri-
od of normal growth.
For single-family permits and
home prices, 2000-2003 is used as the
last normal period, and for employ-
ment, 2007 is the base comparison.
The three components are then
averaged to provide an overall score
for each market; a national score is
calculated based on national measures
of the three metrics. An index value
above one indicates that a market has
advanced beyond its previous normal
level of economic activity.
(Editor's note: In calculating the
LMI, NAHB utilizes employment
data from the Bureau of Labor Sta-
tistics, house price appreciation data
from Freddie Mac and single-family
housing permits from the U.S. Census
Bureau.)
For historical information and
charts, visit nahb.org/lmi.
Looking for something?
Need to know in a hurry?
If it's a supplier of fence materials, equipment, services,
or supplies that you are looking for, World Fence News
will be glad to suggest sources from its comprehensive
database of fence industry suppliers. And it's available
to all paid subscribers of World Fence News at no cost.
Contact us and describe the product and we will do our
best to track it down and give you the name, address,
telephone number and web site of the product's supplier(s).
Again, there is no charge to paid subscribers
of World Fence News.
WORLD FENCE NEWS
1-800-231-0275 (U.S. and Canada)
512-349-2536 • 512-349-2567 Fax
editor@worldfencenews.com
www.worldfencenews.com
Custom Designs for
Vertical Lift Gates and Railing
Beautiful! Efficient! Unique!
Call or e-mail us for your free quote today.
800-704-2837
nelsbloom@msn.com • www.rsigate.com
Full system capability • Standard electric or solar power
Easy to install! We can ship anywhere in the U.S. (incl. AL & HI) as well as Canada!
ZZZVNLGULOFRP
VFDQWKH
FRGHWR
VHHLW
LQDFWLRQ
($6<)$673267'5,9,1*
:HLJKLQJOHVVWKDQSRXQGV
DQGUHTXLULQJQRKRVHVFDEOHV
RUH[WHUQDOSRZHUVRXUFHWKH
*'LVWKHWRROLI\RX¶YHJRW
IHQFHWRPHQGRUEXLOG
7KHJDVSRZHUHG*'
FDQGULYH73RVWJURXQGURGV
DQGURXQGVWHHOSRVWXSWR
GLDPHWHU
'ULYLQJDSRVWLVDVHDV\DV
VTXHH]LQJWKHWKURWWOH²
VRPHHYHQVD\LW¶VIXQ
$YDLODEOHLQRUVWURNH
YHUVLRQVWKHPDFKLQHSDFNVD
SXQFKDQGZLOOUXQIRUDQKRXU
RQURXJKO\DTXDUWRIJDV
≫
8SWRLPSDFWV
SHUPLQXWH
≫
,QWHUQDOUHFRLOGDPSHQLQJ
PDNHVLWHDV\WRXVH
≫
)W/EVRILPSDFWHQHUJ\
≫
'ULYHKXQGUHGVRISRVWV
RQDJDOORQRIJDV
≫
PRQWKSDUWVDQG
ODERUZDUUDQW\
6.,'5,/KDVEHHQSURYLGLQJ
IHQFLQJPDFKLQHVIRUQHDUO\
\HDUVVR\RXNQRZ\RXFDQ
FRXQWRQWKH*'8OWUD'ULYHU
≫
3ULFHGIURP
≫
/LJKWZHLJKWDQG3RUWDEOH
≫
(DV\6WDUWLQJ±(DV\6HUYLFH
≫
1R+RVHV
≫
3RZHUIXO3RVW'ULYLQJ
2UGHU