Home Building a Leading Sector in the Q3 Rebound The economy rebounded sharply during the third quarter, as GDP registered a 33.1% seasonally adjusted annual growth rate. This bounce back followed a gradual reopening of the economy in the wake of the coronavirus pandemic. Home building has undoubtedly been a bright spot for the economy during this period of economic distress. Demand for single-family housing has increased on historically low interest rates, a need for more residential space, favorable demographics for home buying, and an evolving geography of housing demand that favors low density, more affordable markets. Indeed, builder confidence reached an all-time high in October, as total single-family starts in 2020 are poised to post a notable gain. These data are consistent with the rise of the home building share of GDP (the dollar value of single-family, multifamily, and remodeling-related construction activities). This measure increased at a 59% annualized growth rate in the third quarter. And the overall housing share of GDP now stands at 15.5%. NAHB Chief Economist Robert Dietz recently provided the following housing market overview in the biweekly e-newsletter Eye on the Economy: 3 Design Trends to Fall in Love With Fabrics Materials As home buyers are looking more and more to their homes as a sanctuary, there is a trend to design with more natural and organic materials. Biophilic design and bringing in greenery with art, wall coverings, or plants into the design continues to be an important trend. And it makes sense when you consider the proven power of nature and natural elements in design. Organic, natural materials incorporated into design can reduce stress, blood pressure and anxiety, as well as enhance a sense of wellbeing. Creating a cozy, lush environment that promotes relaxing at home is something buyers will be looking for. Textural throws, layered area rugs, and chunky, oversized knit pillows are a great way to meet this expectation. Another fabric that can instantly give a cozy feel is velvet. Very few things say “cozy and safe at home” like velvet upholstered furniture. Outdoors We have discussed at length the importance of bringing the outdoors in, and to no one’s surprise, this will continue to be a trend this fall. As more buyers are spending more time in their homes, they want to know they have options for work and entertainment. They need to see that their living area is not limited to the four walls of the house. Bringing the outdoors in either literally by walls that fully retract or visually by floor to ceiling windows continues to be an important trend. Page 11
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