According to the December 2021 commentary from the Fannie Mae Economic and Strategic Research Group (ESR), the outlook for full-year 2021 economic growth was revised upward to 5.5% — an increase of 0.7 percentage points compared to November’s projections. The increases are due primarily to stronger-than-anticipated consumer spending and inventory investment data.
Wood Markets News
Census Bureau’s Survey of Market Absorption of Apartments Moves Higher on Strong Demand and Low Vacancies
According to data from the recently released U.S. Census Bureau’s Survey of Market Absorption of Apartments (SOMA) and further analysis provided by the National Association of Home Builders (NAHB), the multifamily sector saw continued improvement in Q2 of 2021 due to strong demand and low vacancy rates. The absorption rate of unfurnished, unsubsidized apartments rose by 15 percentage points to 72% in Q2 of 2021.
Rent Prices Increase 21% Year-Over-Year, Including 7% Between October and November
Redfin, the Seattle-based, technology-powered real estate company, is reporting that average monthly rents increased nationwide by 21% year-over-year and were up 7% in the month between October and November. Redfin’s rental data only goes back 2-years, but these are the highest annual and monthly growth rates in at least two-years.
B.C. Government Provides Update on Progress in Old-Growth Forest Deferrals
On Thursday (12-16-21), the B.C. government released a progress report on the steps taken since they announced in early November that harvesting would immediately cease in 2.6 million hectares of old-growth forests. The report noted that the government was making progress on the recommendations of its Old Growth Strategic Review Panel and is continuing to work with First Nations.
B.C. Government Hears from 161 First Nations on Old-Growth Deferral Plan
In early November, the B.C. government announced that its expert panel had mapped out 26,000 square kilometers of old-growth forest at risk of permanent biodiversity loss. At that time, the government asked more than 200 First Nations in the province to decide within 30-days whether they would support the planned deferrals in those area, or if the plan required further discussion.
The Mayr-Melnhof Holz Holding Group Agrees to Acquire Swedish Sawmill Group Bergkvist Siljan From ESSVP IV
The Mayr-Melnhof Holz Holding Group, one of the leading companies in the European sawmilling and engineered wood products industry, has signed an agreement to acquire the Swedish sawmill group Bergkvist Siljan from ESSVP IV. This continues the consistent expansion and growth strategy of the Austrian wood-processing group.
Syilx Okanagan Nation Rejects B.C.’s Process to Identify Old-Growth Forests
On Friday (12-17-21), the Syilx Okanagan Nation, the tribal council representing seven area First Nations, said they are rejecting the process that the B.C. province has used to identify old-growth forests. The Okanagan Nation Alliance (ONA) chair Clarence Louie slammed the province’s consultation process as “inadequate and superficial,” noting all of the Syilx community forestry companies have been left out.
Multifamily Construction Continues its Shift to the Suburbs
According to the latest release of the National Association of Home Builders’ (NAHB) Home Building Geography Index (HBGI), the trend of apartments and other multifamily residential construction continued to shift to suburban areas in Q3 2021. According to the HBGI between Q3 of 2020 and 2021, the share of new multifamily permits fell from 40.5% to 37.9% in large metro core markets.
Leading Economic Index® for U.S. Climbs Higher in November
The Conference Board, a non-partisan, not-for-profit think tank founded in 1916, released today (12-20-21) the Leading Economic Index® (LEI) for the U.S. in November. According to the report, the LEI for the U.S. increased by 1.1% in November to a reading of 119.9 (2016=100), following a 0.9% increase in October and a 0.3% increase in September.
Loans in Forbearance Decline in New Mortgage Bankers Association Loan Monitoring Survey
The Mortgage Bankers Association (MBA) today released its new monthly Loan Monitoring Survey (LMS), which tracks the total number of loans now in forbearance. According to the LMS, the total number of loans in forbearance in November declined by 39 basis points from 2.6% of servicers’ portfolio in the month prior to 1.67% as of November 30, 2021.