Each Monday, we'll let you know what's coming in the week ahead, including important residential and commercial report releases, as well as our own feature articles.
Housing starts — July 19
The Commerce Department will release housing starts data for June on Tuesday, July 19. Last month, the department reported housing starts slipped 0.3% in May to a 1.164 million annualized rate. Multifamily construction dipped 1.2% in May while single-family rose a slight 0.3%
May housing starts topped expectations, as economists surveyed by Reuters predicted starts would fall to 1.15 million. Experts noted that despite the slight slide in new residential construction, the 0.7% bump in building permits signaled that the market will continue to gain momentum.
Will Tuesday's report show that housing starts are back on a positive trajectory?
Construction defects feature article — July 19
When a project is complete, an owner's claims of defective work or design can lead to a costly, time-consuming process of figuring out exactly who is to blame. In a major defect case earlier this year, KB Home, the nation's sixth-largest homebuilder, reached a $23.5 million settlement deal with the Florida attorney general’s office over allegations of substandard construction and deceptive business practices. In our feature article on Tuesday, July 19, experts will offer insight into how to keep confusion to a minimum in the case of a defect claim.
AIA billings — July 20
The American Institute of Architects will release its Architectural Billings Index on Wednesday, July 20. Last month, the AIA reported the index rose to 53.1 in May, up from April's score of 50.6. The May score, which reached its highest level in nearly a year, signaled a rise in design services, as any mark above 50 indicates an increase in billings.
AIA Chief Economist Kermit Baker was optimistic about commercial activity in the industry and said in a release, "Demand levels are solid across the board for all project types at the moment."
The ABI is a significant report for the commercial construction industry, as it serves as an indicator of future construction spending — with a lead time of about nine to 12 months.
Veterans in construction feature article — July 21
The construction industry is considered a promising route for veterans returning to the U.S. and looking for reliable employment. In the midst of a building boom and worker shortage, some construction experts believe veterans can help remedy the skilled labor shortage. In our feature article on Thursday, July 21, we'll explore the construction opportunities and training programs available to military veterans returning to the workforce.
Existing home sales — July 21
The National Association of Realtors will release existing home sales data for June on Thursday, July 21. Last month, the NAR announced existing home sales rose 1.8% between April and May to a seasonally adjusted annual rate of 5.53 million.
NAR Chief Economist Lawrence Yun said the trend of strengthening existing home sales was due largely to "homeowners realizing the equity they've accumulated in recent years and finally deciding to trade-up or downsize." He noted, however, that the 2% dip in first-time buyer share demonstrated the ongoing struggle for new buyers to enter the market.
Will existing home sales continue their upward trajectory this month, and will first-time buyers snag a greater portion of the market?
