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DataDigest: Construction costs easing for homebuilders

Housing Wire

New home construction exploded early in the pandemic as soaring home demand squeezed existing inventory nationwide, giving homebuilders a much bigger share of a shrinking pie. Index values for most construction inputs are down from 2022 but remain above pre-pandemic levels. That could set the backdrop for a slower pace of construction.

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Construction worker shortage has reached “crisis” levels

Housing Wire

To keep pace with current construction demand, and account for attrition, 740,000 new construction workers are needed each year for the next three years , a report by the Home Builders Institute contends. From 2022 through 2024, this total represents a need for an additional 2.2 million new hires for construction.

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Opinion: More financing options for ADUs are needed

Housing Wire

In the ongoing struggle for attainable housing, one positive development has been the increased availability of funding options for homeowners seeking to incorporate Accessory Dwelling Units (ADUs) into their properties. Draw structures for loans supporting new construction of ADUs, especially for prefab, are still “clunky.”

Finance 485
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Treasury’s new housing plan includes redirected COVID-19 funds to boost affordable supply

Housing Wire

They include the reallocation of funds originally earmarked for relief from the economic impacts of the COVID-19 pandemic for affordable housing construction, as well as new provisions for the 2021 American Rescue Plan (ARP) Emergency Rental Assistance (ERA) program to clarify the use of such funds for affordable housing.

Insurance 473
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Mortgage rates dip to 6.6% to mark the lowest level since May 2023

Housing Wire

This is an encouraging development for the housing market and in particular first-time homebuyers who are sensitive to changes in housing affordability. Housing starts declined 9% in 2023, an indication that homebuyers looking to purchase a new construction home may continue to struggle with the lack of inventory this year.

Mortgage 530
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Liberty Reverse parent Ocwen seeks to rebrand this year

Housing Wire

The only entity to be immediately impacted in the initial rebranding stage is Ocwen itself, but a version of the new name is expected to roll out to both Liberty and PHH at some point in 2024. It has constructed a servicing platform while adding multi-asset originations and asset management capabilities.

Mortgage 416
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Top LO Tim Potempa joins E Mortgage Capital

Housing Wire

Potempa had a joint venture with OneTrust from March 2022 to March 2024. But according to him, the firm has invested in new construction, land, and condominiums in a challenging mortgage market. Potempa mainly focuses on the government lending space, which represents 60% of his total volume, he said.