AUSTIN, Texas--(BUSINESS WIRE)--The BuildFax Housing Health Report revealed continued declines in single-family housing authorizations, while maintenance activity saw minor gains after five months of consecutive declines. The increase is partially attributed to elevated repairs following recent convective storms across the country this spring. The report, which leverages U.S. property condition and history data to deliver macro- and microeconomic trends, includes a special preview into how the upcoming hurricane season may encourage increased maintenance.
Housing Supply by Volume
- Single-family housing authorizations decreased by 8.23% year over year.
- Existing housing maintenance volume increased by 2.45% year over year.
- Existing housing remodel volume decreased by 0.95% year over year.
“Declines in single-family housing authorizations and maintenance activity have moved in unison for five months,” said BuildFax CEO Holly Tachovsky. “This April, we’re starting to see a split emerging with a rise in maintenance activity. While there is always a spotlight on new construction, maintenance is also a must-watch indicator – it reflects the health of the existing housing stock, which comprises 90% of all U.S. properties. This month’s maintenance gain is a positive sign amidst a housing slowdown and we’ll be watching whether this activity remains stable over time.”
Housing Slowdown Hasn’t Halted Hurricane Recovery
States impacted by the 2018 hurricane season are still experiencing the tail end of rebuilding activity. North Carolina and South Carolina maintenance activity increased 3.09% and 2.96% year over year in April, respectively. Florida’s activity wasn’t as straightforward. Maintenance activity in the state decreased 10.03% year over year, but this was due to complexities surrounding overlapping effects of 2017’s Hurricane Irma and 2018’s Hurricane Michael. See full analysis here.
The report also revealed five key factors that may affect 2019 hurricane recovery. According to a recent analysis of 11 major hurricanes between 2000 and 2018, the average recovery period is 10.7 months. Amidst the housing slowdown and with another potentially active hurricane season on the horizon, it’s more important now than in years prior to monitor recovery and its impact on the health of the U.S. housing stock.
BuildFax, headquartered in Austin, Texas, is trusted by the largest insurance and financial institutions in the world to deliver business-critical property condition and history data. With the only database of its kind encompassing more than 23 billion data points on commercial and residential structures, BuildFax delivers detailed data on remodeling, solar installations, new construction, roof age, major systems, maintenance history and more. To learn more about BuildFax, visit www.buildfax.com.
METHODOLOGY: BuildFax conducted this study by examining properties in the U.S. between the years 2013 and 2019. Data only includes properties located within permitting authorities with 100% coverage during the above time frame. All percentage increase and decrease statistics leverage the same data set across time. Due to historical revisions made by permitting authorities, the data is subject to change. Estimates are as of May 8, 2019.