NAHB/Wells Fargo Housing Market Index NAHB Mid-Year Meeting June 15, 2017 Rose Quint NAHB Assistant Vice President Survey Research

HMI > 50 = Builders FEEL optimistic What is the Housing Market Index (HMI)? It is a measure of how home builders FEEL about new home sales & buyer traffic * Bloomberg * NPR * Wall Street Journal * Marketwatch * Fox Business * Reuters * CNN Money * CBS Radio * The Chicago Tribune * Forbes * The Associated Press HMI > 50 = Builders FEEL optimistic

HMI at 69 in Dec’16 (Post-election) HMI & Housing Starts HMI at 69 in Dec’16 (Post-election)

Labor Shortages

8 out of 10 Members are Facing Labor Shortages

Share Facing Labor Shortages Increases with Company Revenue

Very Few Members Have Used H-2B Visa Program

…But 2/3 Would Apply or at Least Consider It

What Kind of Companies Would Apply for Workers?

Young Adults & the Construction Trades National poll 2,000 18 – 25 Year Olds 92% finished high school 50% male / 50% female

Know Desired Career Field? Young Adults 18-25 Know Desired Career Field? 74% Yes 26% No/Not Sure

Young Adults 18-25 74% Know Field What is that field?

Young Adults 18-25 74% Know Field 3% Overall Construction Trades How About Across Different Demographic Groups?

Most Important Benefits of a Career in the Trades? Young Adults 18-25 74% Know Field 3% Construction Trades Most Important Benefits of a Career in the Trades?

Young Adults 18-25 26% Don’t know % 1 or 2 26% Don’t know What is the Chance you May Consider a Career in..? 1=Not a chance no matter the pay; 5=Very good chance if pay is high

Young Adults 18-25 26% Don’t know 63% of Undecided Young Adults indicated NO or little chance for a career in the trades Why?

How much $$ to reconsider? Young Adults 18-25 26% Don’t know 63% of Undecided Young Adults indicated little or NO chance for a career in the trades How much $$ to reconsider?

All Young Adults in the Study $56,150 (Median) All Young Adults in the Study How much do you think people in the trades earn in a year?

How Much Do Construction Occupations Pay In Reality?   Average Top Quartile First-Line Supervisors of Construction Trades and Extraction Workers $65,620 $78,620 Construction and Building Inspectors $60,380 $73,910 Plumbers, Pipefitters, and Steamfitters $55,380 $68,940 Electricians $54,800 $67,460 Tapers $53,140 $69,560 Brickmasons and Blockmasons $51,920 $62,800 Operating Engineers and Other Construction Equipment Operators $51,380 $63,520 Glaziers $47,070 $57,420 Carpenters $46,910 $57,000 Terrazzo Workers and Finishers $46,620 $58,280 Drywall and Ceiling Tile Installers $45,640 $52,970 Tile and Marble Setters $44,650 $54,610 Carpet Installers $44,430 $56,320 Stonemasons $43,860 $53,550 Floor Layers, Except Carpet, Wood, and Hard Tiles $42,320 $51,150 Cement Masons and Concrete Finishers $42,180 $49,830 Plasterers and Stucco Masons $40,910 $47,740 Roofers $40,590 $48,820 Painters, Construction and Maintenance $39,570 $46,310 Construction and Related Workers, All Other $39,210 $46,290 Insulation Workers, Floor, Ceiling, and Wall $38,800 $45,110

Thank you eyeonhousing.org housingeconomics.com