Higher gas costs are driving up prices for a number of things–airfare, pharmaceuticals, even golf balls–and they’re taking a toll on builders, too. Soaring energy prices have raised construction material prices for both commercial and residential builders, the Dallas Morning News said Friday. In fact, construction costs are rising at more than twice the level of overall consumer prices, according to the Associated General Contractors of America–and costs for some building materials, like steel, concrete and roofing materials, have increased even faster. The higher energy costs translate into higher production prices for building materials, Federal Reserve Bank of Dallas economist…

The second largest homebuilder in the U.S., Lennar Corp., announced its fifth quarterly loss in a row today–which unfortunately wasn’t the only the only sign this week that building industry stress is mounting. Miami-based Lennar has had to cut prices to draw buyers, and as a result, its fiscal second quarter results were low: The company had a net loss of $121 million. Revenue fell 61 percent. And even though there were some glimmers of hope in Lennar’s report–its cancellation rate fell from 29 percent last year to 22 percent–Lennar’s future looks anything but rosy because new orders declined 45…

After two days of debate, the Fed announced this afternoon that the federal funds rate will remain at 2 percent. In its April 30 statement, the Federal Open Market Committee sidestepped the issue of whether it felt growth or inflation was the greater concern. And now we know: It’s inflation. After its 9 to 1 vote (according to BusinessWeek, Dallas Fed president Richard W. Fisher voted to increase  the target for the federal funds rate), the central bank said its focus had shifted to inflation, rather than economic expansion. "Although downside risks to growth remain, they appear to have diminished…

It’s Federal Reserve meeting day–and the world is waiting to see how heavily inflation will weigh on the central bank’s decisions. Although the Fed won’t release a statement until the end of the meeting on Wednesday, anticipation is building that the central bank will leave interest rates alone, according to Forbes. The Fed also is likely to comment on the issues facing the U.S. economy–including inflation; some forecasts suggest the Fed will hold its main short-term lending rate at 2 percent for the months to come. Few sources are predicting the Fed will again cut rates this week. For almost…

The dollar is weak–it fell against the euro by the biggest amount since March last week due in part to increased credit market issues and oil costs–which means foreigners can get big deals on U.S. products, vacations and property. In April, the National Association of Realtors said a U.S. home could be bought by a foreigner for an average discount of 30 percent, according to USA Today. The foreign-buyer trend isn’t exactly a new one: The euro been stronger than the dollar lately; but the foreign buyer wave dates back to the housing boom. According to the NAR 2007 Profile…

New York City’s rental market is legendary: Because buying a home within city limits is so expensive, the city has long been a renter’s market. But now–thanks to new rent increases, which the board in charge of New York City’s rent-stabilized apartments passed yesterday–renters may find their cost of living is about to rise. New York’s high housing demand has pushed apartment costs up to unbelievable levels in recent years–which renters are happy to pay. With rents averaging $2,922, Forbes selected New York as the most expensive city in the country, noting that its 2.8 percent vacancy rate should keep…

Urban multifamily developers, start your engines: Demand is about to increase, and we have the astronomically high gas prices to thank. Americans are looking at homebuying in a new light, according to an Associated Press article reprinted in the San Jose Mercury News today. They don’t want to commute–partially because of the time it takes, but more often, because it’s just getting too expensive to drive far. Gas has risen by more than a dollar this year; this week, it hit a new high of $4.08 per gallon on Monday. As a result, Americans are driving less. Compared to April…

California has given us many wonderful things–Hollywood. Disneyland. A gold rush. And now, it may be about to give the housing market a huge gift: Hope. That comes courtesy of a quarterly report from the University of California, Los Angeles–released today–which says that while California home prices are still low, the number of condos and single-family homes being sold is rising in some areas. Why should we care about home sales in one state? Because it’s California, which is: The most populous U.S. state; One of the regions that saw the biggest price increases during the housing boom and, during…

How is the housing market doing? If you’re hoping to hear that things are improving, don’t ask builders. At least, that’s the picture painted by the National Association of Home Builders/Wells Fargo builder confidence index, released this week, which didn’t offer much more industry hope. And with good reason. Last year, the index averaged around 27; in June, it hit 18–the second time the index has reached that low point (the first was in December). In May, the index measured builder confidence at 19. Forecasts had placed the June index at about 19, according to Bloomberg–the surprise drop may not…

Forget real estate sales. There’s a bigger indication that the market may be turning around: Real estate investment. Home prices may be down, but the average real estate fund is 2 percent higher this year compared to 2007, according to the Chicago Tribune. That’s a decent amount, given New York-based financial analyst Lipper Inc. also says that the average U.S. diversified stock fund is down 8 percent this year. The rise in real estate-related stocks is good news–and offers hope as the housing slump rages on. Shares of self-storage and apartment management companies have risen as investors are again beginning…