U.S. Housing Market Conditions 
1st Quarter 1996
May 1996

SUMMARY

Housing production and marketing generally fared well in the first
quarter of 1996, aided by the drop in interest rates in late 1995,
but there were unsettling indications of possible future risks.
Although interest rates began an upward trend during the quarter,
housing permit volume for multifamily units dropped slightly,
although permits for single-family houses held steady. However,
overall permit activity was above year-earlier levels. Both
single-family and multifamily housing starts rose from the last
quarter of 1995 and were solidly above the first quarter of 1995
level. Mobile (manufactured) home shipments in the last quarter of
1995 continued the steady production increase that began after the
1991 low point. Mobile home volume also rose from both the previous
quarter and especially from a year earlier.

New home sales increased in the first quarter of 1996 and were
strongly ahead of last year. The healthy sales rate, however,
masked the fact that the unsold inventory had reached high levels
not seen since February 1980. During that time sales dropped due to
high interest rates, and the months' supply of unsold homes
eventually reached that of a year or more. While there is no
indication that interest rates will rise to such levels again, any
slowing of sales rates could leave builders with an increasingly
unmanageable supply of unsold and completed homes.

Multifamily production has stalled a bit after a modest recovery
during the past year or two. Rental vacancy rates remain high,
rising slightly from the fourth quarter of 1995 and more
significantly from the first quarter of 1995. Much of the increase
in rental vacancies probably has been due to the 1995 surge in
homeownership, as many renters became homeowners. While some of
these households converted their rental units to owner units,
others vacated rental units to purchase elsewhere, increasing the
rental vacancy rate. These households also included minorities and
young families with children, few of whom venture into the new home
market, but who depend on the existing stock to meet their needs.

Existing home sales were essentially unchanged in the first quarter
but were comfortably above the first quarter of last year.
Commitment interest rates declined very slightly in the first
quarter of 1996 and were a striking 153 basis points below the
first quarter of 1995. However, interest rates climbed steadily
throughout the first quarter of this year, rising more than 65
basis points to near 8 percent; if they remain at that level,
housing marketing and production should continue to fare reasonably
well throughout this year. Housing production and marketing levels
have been very satisfactory in the last few quarters. Whether this
pace can be sustained, avoiding a large inventory overhang and
financial problems for builders and their suppliers, remains to be
seen. The next two quarters bear watching. 

Regional Perspective

Reports from HUD's field economists indicate that economic
expansion has continued at a moderate rate in most regions. 

Job growth in New York remains sluggish, however, as this State has
been slow to recover the nearly 600,000 jobs lost between 1989 and
1992. The Blizzard of 1996, the floods that followed, and the March
strike in the auto industry resulted in a static first-quarter
economy in the Mid-Atlantic. Employment growth rates in Utah and
Colorado continue to be among the highest in the Nation; heavy
snowfall in the mountains made this Winter a very good one for ski
resorts, many of which are undergoing ambitious expansions.
California's economy seems to be on the way to recovery;
first-quarter 1996 employment was 2.8 percent above the first
quarter of 1995. The rebound in California is also helping to boost
tourism in Nevada, which is starting the year very strong even
after a nearly 7-percent employment increase in 1995. 

First-quarter 1996 building permits showed a national increase of
10 percent over the first quarter of 1995. Single-family permits
were up 14 percent while multifamily permits remained at about the
same level. Four regions -- the Great Plains, Rocky Mountain,
Pacific, and Northwest -- had increases in both single-family and
multifamily permits. Reflecting the harsh Winter, first-quarter
permits declined in New England and the Mid-Atlantic.

Housing sales, sales prices, and rents have been moderate to solid
in most parts of the country. Areas performing strongly include the
Boston rental market, high-end rentals in Manhattan, and housing
markets in Atlanta, Chicago, Phoenix, Las Vegas, Portland, and
Spokane. Current weak markets include Hartford, Buffalo, and
Honolulu. The Los Angeles and Riverside-San Bernardino areas in
southern California remain oversupplied with rental housing. 

-------------------------------

HOUSING THE OLYMPICS: ATLANTA 1996 [1]

July 19, 1996 marks the opening ceremonies for the 1996 Olympic
Games in Atlanta. Over the following 16 days, 197 countries will be
represented by 10,500 participating athletes; 40,000 volunteers
will be at work to ensure that all goes smoothly; and 2 million
visitors will descend on Atlanta to see the Games. By then, the
rush to prepare for the Games will be over, including completion of
the 85,000-seat Olympic stadium, the Olympic Village facilities
serving the athletes, Centennial Olympic Park, the central
gathering place for visitors, and the myriad of projects undertaken
to improve and prepare the city for the influx of visitors. Final
arrangements also will have been made to house the participants and
overnight visitors. This article examines the impact -- both short-
and long-term -- of the Olympics on Atlanta's housing market.

Atlanta's Economy and Housing Market Before the Olympics

Atlanta was designated as the site for the 1996 games in September
1990. Since then preparations for the Olympics have added extra
momentum to an already strong economy and housing market. In recent
years, Atlanta's economy has benefitted from growth in trade,
business services, and telecommunications. Employment growth has
averaged a very robust 90,400 jobs (or 5.5 percent) a year since
1992, with most sectors profiting from the expansion. 

The Georgia State University (GSU) Economic Forecasting Center
projects an employment gain of 92,000 jobs in 1996, anticipating
that Olympic-related jobs will peak at just under 40 percent of
this year's growth. The employment categories most directly
impacted by the Olympics -- construction and business services --
have shown dramatic growth. There are now more than 82,000
construction workers in the area, up from about 63,000 in 1992.
Employment in business services has increased by almost 36,000 jobs
in the past 2 years alone, with percentage gains in the range of
about 12 to 15 percent. According to the GSU Economic Forecasting
Center, business services employment will soar an additional 20
percent during the Games. 

The Atlanta area's very low unemployment rate, 4.3 percent in 1995,
is indicative of just how strong the demand has been for labor. The
construction boom, in particular, has exhausted much of the
potential labor supply for that industry throughout Georgia and
parts of the neighboring States. 

Stimulated by the strong economy, the Atlanta area housing market
has been very active in recent years. In particular, the sales
housing market has been one of the most active in the Nation, with
the number of single-family houses authorized by building permits
averaging 33,000 units annually from 1993 to 1995. So far, the
sales market has cleared the increased supply, and home prices have
continued to rise.2 

In the past 2 years, Atlanta area apartment construction reached
the highest levels since the construction boom that immediately
preceded the rental market crash of the late 1980s. There were
8,100 multifamily units authorized by building permits in 1994 and
12,700 units in 1995. Through the end of 1995, the absorption pace
of the supply of new rental units had remained at an acceptable
level. The overall rental vacancy rate also had declined to about
7 to 9 percent, after lingering in the 12-percent range from 1989
through 1992. Due to the overall market improvement and, to some
extent, the inflationary impact of the Olympics, recent rent
increases have been substantially above the national average.
According to the residential rent survey of the Consumer Price
Index, Atlanta area rents rose 5.6 percent in 1995, more than twice
the national average rate for urban areas.

The Olympics and Housing Market Speculation 

The thought of 2 million visitors coming to the area for the
Olympics fueled a speculative fervor among builders, apartment
owners, and homeowners. Clear signs of this enthusiasm can be seen
in the behavior of all three parties.

There are estimates that as many as 2,500 rental units will be
completed just prior to the Games and that a significant share of
these units have been rented to Olympic visitors. These figures
suggest that between 10 and 20 percent of last year's apartment
production in the Atlanta area has a direct Olympic connection.
Applications for Federal Housing Administration multifamily
mortgage insurance rose during the past 2 years, particularly as
builders attempting to take advantage of expected high rental
demand during the Olympics turned to HUD when private lenders
rejected them. Also, planned apartment construction has been timed
to become available for use as daily or weekly rentals for the
Olympics.

Local market analysts have identified about 1,000 rental units in
projects that have contractual arrangements to be used as temporary
rental housing during the Olympics. Under these contracts, current
residents will vacate their units for the duration of the Olympics
so that property owners can rent to visitors. In some cases this
short-term arrangement is expected to be so profitable that it has
made the difference in the economic viability of these projects.
Lenders are reported to have required the deposit of Olympic rents
into special reserves to protect against slow rent-ups after the
Olympics. As the Games drew closer, there were stories that tenants
of rental properties inside the Olympic Ring that encircles the
downtown Atlanta sports venues would be displaced to make way for
Olympic visitors. To their credit, local property managers and
property owners working through their apartment association moved
quickly and decisively to prevent involuntary displacements.
Judging from the few incidents now being reported, their efforts
have been largely successful. 

Initially, Atlanta area homeowners also had high hopes of lucrative
short-term rental leases for their homes during the Games. A survey
conducted by the GSU Economic Forecasting Center identified 300,000
homeowners interested in renting their homes to visitors.

Despite the apparent magnitude of the Olympic tidal wave, it became
obvious, as time passed, that the supply of available homes and
apartments far exceeded the demand. After adjusting for length of
stay and size of household, GSU's Economic Forecasting Center has
estimated that the projected 2 million visitors will require about
85,000 rentals per day. Ready to meet this demand are about 55,000
hotel rooms in the greater Atlanta area, developed over the years
to service Atlanta's role as a favorite convention center. Another
20,000 units will be provided by friends and relatives of the
visitors. The remaining 10,000 short-term rentals will be supplied
by owners of private homes and apartments. 

It is now estimated that about 8,000 homes and perhaps up to 2,000
apartment units will be rented for the duration of the Olympics.
The rates of the most current rentals also are considerably below
the initial asking prices. Single-family homes are being leased for
$150 to $400 a night per bedroom, with only a very few houses --
those with exceptional locations and amenities -- at the top end of
this range. A two-bedroom apartment typically is renting for about
$165 a night.

The Olympics' Physical Legacy

While the Olympics have not produced as many golden eggs as
initially hoped for by apartment builders and homeowners, they have
transformed the Atlanta housing market in many ways. The most long-
lasting effect may be on downtown Atlanta. 

Downtown Atlanta has had little development impetus in recent
years, as offices, restaurants, and stores have abandoned the area
for the suburbs. The major Olympic construction projects, however,
are transforming the city's physical appearance to such an extent
that civic and business leaders are optimistic that they will lead
to an invigorated and revitalized downtown. Also, the Games have
boosted ongoing efforts to include rental housing as part of
downtown revitalization. 

After the lull caused by the soft market conditions of the late
1980s, there has been a revival of interest in developing new
apartments in the downtown and near-downtown neighborhoods of
Atlanta. Three projects, one adjacent to city hall in the downtown
area and two in the midtown area, are under construction and will
contain 613 units. All have arrangements to be used as temporary
housing during the Olympics. The downtown project, with 164 units,
will be a key development to watch. It will include the amenities
needed to overcome the obstacles to living in an area considered to
be less than desirable for residential development. Parking spaces
and a grocery store are included, and resident personal safety
concerns will be addressed through better street lighting and
increased policing. Some local analysts still consider this a risky
venture and will be closely following the initial rent-up period. 

A relatively recent phenomenon in the local market has been the
success of loft apartment properties. The first developments of
this type began in the late 1980s in the Castleberry Hill area
adjacent to downtown. This area, designated a National Register
Historic District, has a collection of late 19th and early 20th
century warehouse buildings, a number of which feature rooftop
views of the downtown skyline. Loft apartments also have become
popular in the Five Points area of downtown. Three of the largest
projects, ranging in size from about 65 to 110 units, are under
construction in that area near Peachtree Street at the newly
renovated Woodruff Park. Several loft developments are also located
in the Marietta Street corridor near Georgia Tech. 

The 1995 Arthur Anderson study on downtown market-rate housing in
Atlanta identified more than 300 exclusively residential loft
apartments. (Some lofts have mixed commercial/residential use.) A
recent survey by Dale Henson Associates counted almost 700 loft
units under construction and nearly half that number in the
planning stages. Loft apartments have been well received to this
point; occupancy in the Fall of 1995 was close to 100 percent, and
the supply completed since then is being absorbed satisfactorily.
Rents are high, averaging about $1 a square foot; two-bedroom units
typically rent from $1,100 to $1,400. Tenants are young (most are
25 to 40 years old), have relatively high household incomes
(usually above $50,000), and are predominately new arrivals to the
Atlanta area. 

Their location inside the Olympic Ring has made loft apartments
very attractive to corporate sponsors. The owners of several of
these buildings have contractual arrangements with companies to use
them as hospitality centers and residences for VIP visitors to the
Games. 

As part of what is described as an instant city, 8 dormitories with
more than 9,300 living spaces have been constructed during the past
several years to house the athletes at the Olympic Village. After
the Olympics this total will be reduced to 7,300 spaces when the
living area of the largest facility is reduced from 4,000 to 2,000
spaces. GSU will operate this facility, as the school's first
dormitory, which will open in the Fall of 1996. The other 5,300 new
dormitory spaces will belong to Georgia Tech. 

The Olympics' Long-Term Housing Legacy

After the Olympics the area economy will resume a more normal rate
of growth. The GSU Economic Forecasting Center anticipates that the
net employment gain will be about 35,000 jobs in 1997. Although the
construction and business services jobs associated with the
Olympics will be gone, the underlying strength of the economy will
remain intact. Solid employment gains are expected to continue in
trade and services and, to a lesser extent, in transportation,
communications, and finance. 

On the housing market side, the apartments and homes rented to
visitors will return to their normal use. However, those units
built to take advantage of the Olympics will shape the dynamics of
the Atlanta housing market for years to come. The long-term impact
will be focused on the downtown area where the Olympics reversed
the no-new-building patterns of the late 1980s and early 1990s and
fostered efforts to improve the livability of the downtown area. 

The housing developments -- both the lofts and the more traditional
rental units -- described in this article are an important step in
this direction. The dormitories are also expected to play a part in
downtown revitalization. Local civic and corporate leaders are
working cooperatively to complement these and other physical
enhancements, such as improved public safety and better street
lighting. Their hope is that the Olympics have stimulated interest
in downtown housing by creating a receptive environment for
neighborhood revitalization and by providing the financial
incentives that made development possible. 

However, questions about the ultimate success of these efforts
remain. The immediate post-Olympic outlook for the Atlanta housing
market is for smaller job gains and reduced housing demand. Housing
market analysts, therefore, have mixed views about whether downtown
Atlanta can accommodate all of the residential development now
underway. Some hold that these developments are still premature,
based on the continuing decline of commercial enterprises. Others
maintain that housing is imperative to creating a viable downtown
and that this is the time to take advantage of the very substantial
Olympic-related investment in buildings and improved
infrastructure. 

While an unusual and interesting submarket development, lofts
remain a very limited part of the overall rental market. The large
supply of units currently in the production pipeline will test the
capacity of this high-end market, especially in a post-Olympic
environment.

According to the Arthur Anderson study, the 7,300 net addition of
dormitory spaces represents a 70 percent expansion of the inventory
serving students in the downtown area. This major addition to the
current supply of student housing has both advantages and
disadvantages to downtown revitalization efforts. The concentration
of the student population will enliven the area and create demand
for restaurants, service establishments, entertainment, and other
activities. There is concern, however, that many of the students
who will live in the new dorms would otherwise have chosen private
market rental housing. Even allowing for anticipated enrollment
growth and the possibility that some existing dormitories will be
phased out of operation, student demand for private market
apartments will be significantly reduced by this large increase in
dormitory spaces. 

While a revitalized downtown is universally viewed as a beneficial
and exciting prospect, a favorable outcome cannot be ensured.
Progress during the next several years in attracting jobs,
businesses, housing, and entertainment establishments, and in
controlling crime will be necessary if downtown revitalization as
a result of the Olympic Games is to be realized. 

NOTES

1 The authors wish particularly to thank Dale Henson of Dale Henson
Associates, Inc. and Dr. Donald Ratajcak, Director of the Georgia
State University Economic Forecasting Center, for sharing their
valuable data and opinions on current economic and housing market
conditions in the Atlanta area.

2 These price increases, however, have raised concern that builders
may be overreacting with speculative home construction. As the
economy returns to a more normal growth pattern, rising inventories
of unsold homes are a possibility to be watched for in the coming
year.

-----------------------------

U.S. Housing Market Conditions is published quarterly by the U.S.
Department of Housing and Urban Development, Office of Policy
Development and Research.

Henry G. Cisneros, Secretary
Michael A. Stegman, Assistant Secretary, Office of Policy
 Development and Research
Frederick J. Eggers, Deputy Assistant Secretary, Economic Affairs
Paul A. Leonard, Deputy Assistant Secretary, Policy Development
Duane T. McGough, Director, Housing and Demographic Analysis      
 Division 
David E. Shenk, Director, Economic Market Analysis Division 
Katherine L. O'Leary, Director, Research Utilization Division 
Ronald J. Sepanik, Deputy Director, Housing and Demographic
 Analysis Division
Bruce D. Atkinson, Economist
Alan Fox, Economist
Sue George Neal, Economist
Randall M. Scheessele, Economist
Edward J. Szymanoski, Economist 
Vanessa Void-Taylor, Research Utilization Specialist
Robert R. Callis, Bureau of the Census

HUD Field Office Economists who contributed to this issue are:

New England: John R. Reilly, Boston
 Hartford: Michael W. Lackett, Boston
New York/New Jersey: David Burns, New York
 Buffalo: William Coyner, Buffalo
Mid-Atlantic: Frances A. Kenney, Richmond
 Baltimore: James S. Kelly, Baltimore
Southeast: Lamar L. Littleton, Atlanta
 Winston-Salem: Gerald R. Pifer, Greensboro
Midwest: Joseph P. McDonnell, Chicago 
 Detroit: Thomas W. Miesse, Detroit
Southwest: Linda L. Hanratty, Ft. Worth 
 Shreveport: Nancy S. Chung, New Orleans
Great Plains: Donald J. Gebauer, Kansas City 
 Springfield: Lawrence Hoaglund, Kansas City
Rocky Mountain: James A. Coil, Denver
 Fort Collins-Loveland: James A. Coil, Denver
Pacific: Robert E. Jolda, San Francisco
 Orange County: John C. Maloney, Los Angeles
Northwest: Pamela R. Sharpe, Seattle
 Anchorage: Sarah E. Bland, Seattle

-----------------------------

NATIONAL DATA

HOUSING PRODUCTION

Permits

Permits for the construction of new housing units fell 3 percent in
the first quarter of 1996 to a seasonally adjusted annual rate of
1,398,000 units, but were 10 percent above the first quarter of
1995. One-unit permits, at 1,076,000 units, were equal to the level
of the previous quarter, but up 14 percent from a year earlier.
Multifamily permits (5 or more units in structure), at 261,000
units, were 11 percent below the fourth quarter and about the same
as the previous year. 

Starts

Construction starts of new housing units in the first quarter of
1996 totalled 1,468,000 units at a seasonally adjusted annual rate,
4 percent above the fourth quarter of 1995 and 12 percent higher
than the first quarter last year. Single-family starts, at
1,160,000 units, were a statistically insignificant 3 percent
higher than the previous quarter and 12 percent above the
year-earlier rate. Multifamily starts totalled 284,000 units, 13
percent above the previous quarter and 20 percent above the same
quarter last year.

Under Construction

Housing units under construction at the end of the first quarter of
1996 were at a seasonally adjusted annual rate of 821,000 units, 3
percent higher than the previous quarter and 7 percent above the
first quarter of 1995. Single-family units under construction at
the end of the first quarter of 1996 stood at 583,000 units, a
statistically insignificant 2 percent above the previous quarter
and 5 percent above the first quarter of 1995. Multifamily units
were at 218,000 units, up 4 percent from the previous quarter and
12 percent above the first quarter last year.

Completions

Housing units completed in the first quarter of 1996, at a
seasonally adjusted annual rate of 1,372,000 units, were 5 percent
above the previous quarter, but a statistically insignificant 1
percent below the same quarter last year. Single-family
completions, at 1,091,000 units, were 5 percent above the previous
quarter, but 6 percent below the year-earlier rate. Multifamily
completions, at 250,000 units, were 9 percent above the previous
quarter and 39 percent above the same quarter last year. 

Manufactured (Mobile) Home Shipments

Shipments of new manufactured (mobile) homes to dealers were at a
seasonally adjusted annual rate of 354,000 units in the fourth
quarter of 1995, 3 percent above the previous quarter and 10
percent over the rate a year earlier.

-----------------------------

HOUSING MARKETING

Home Sales

Sales of new single-family homes totalled 709,000 units at a
seasonally adjusted annual rate (SAAR) in the first quarter of
1996, 5 percent above the previous quarter and 17 percent above the
first quarter of 1995. The number of new homes for sale at the end
of March 1996 numbered 379,000 units, up a statistically
insignificant 2 percent from the last quarter and up 10 percent
from the first quarter of 1995. At the end of March, inventories
represented a 6.8 months' supply at the current sales rates, a
statistically insignificant 3 percent above the previous quarter
and the same as the first quarter of 1995.

Sales of existing single-family homes reported by the NATIONAL
ASSOCIATION OF REALTORS for the first quarter of 1996 totalled
3,960,000 (SAAR), down 1 percent from the fourth quarter's level,
but 11 percent above the first quarter of 1995. The number of units
for sale at the end of the first quarter was 2,240,000, 52 percent
above the previous quarter and 15 percent above the first quarter
of 1995. At the end of the first quarter, there was a 6.4 months'
supply of units, 39 percent above the previous quarter and the same
as the first quarter of 1995.

Home Prices

The median price of new homes during the first quarter of 1996 was
$135,800, a statistically insignificant 2 percent below the
previous quarter, but 4 percent above the first quarter of 1995.
The average price of new homes sold during the first quarter of
1996 was $159,900, down a statistically insignificant 1 percent
from the last quarter of 1995, but up 4 percent from the same
quarter a year ago. The price adjusted to represent a constant
quality home was $165,200, 1 percent above the fourth quarter of
1995 and 4 percent above the first quarter of 1995. The values for
the set of physical characteristics used for the constant quality
house have been shifted to 1992. 

The median price of existing single-family homes in the first
quarter of 1996 was $114,700, 1 percent above last quarter and 6
percent above the first quarter of 1995, according to the NATIONAL
ASSOCIATION OF REALTORS. The average price of $139,900 was 1
percent above the previous quarter and 4 percent above the first
quarter of 1995.

Housing Affordability

Housing affordability is the ratio of median family income to the
income needed to purchase the median-priced home based on current
interest rates and underwriting standards, expressed as an index.
The NATIONAL ASSOCIATION OF REALTORS composite index value for the
first quarter of 1996 showed that the family earning the median
income had 131.2 percent of the income needed to purchase the
median-priced existing home. This figure is 2 percent above the
fourth quarter of 1995 and 4 percent above the first quarter of
1995. This increase is the result of a 1-percent rise in the median
home price being offset by a 20-basis-point interest-rate drop and
a 1-percent growth in median family income during the last quarter.
The fixed-rate index improved by 3 percent from the fourth quarter
of 1995 and by 13 percent from the first quarter of 1995. The
adjustable-rate index fell by 1 percent from both the previous
quarter and the year-earlier quarter.

Apartment Absorptions

There were 45,900 new, unsubsidized, unfurnished, multifamily (5 or
more units in structure) rental apartments completed in the fourth
quarter of 1995, down a statistically insignificant 5 percent from
the previous quarter, but up 29 percent from the fourth quarter of
1994. Of the apartments completed in the fourth quarter of 1995, 77
percent were rented within 3 months. This absorption rate was a
statistically insignificant 5 percent above the previous quarter
and 1 percent above the same quarter the previous year. The median
asking rent for apartments completed in the fourth quarter was
$673, a statistically insignificant 2 percent above the previous
quarter and 21 percent higher than a year earlier.

Manufactured (Mobile) Home Placements

Homes placed on site ready for occupancy in the fourth quarter of
1995 totalled 287,000 at a seasonally adjusted annual rate,
unchanged from the previous quarter, but down 8 percent from the
fourth quarter of 1994. The number of homes for sale on dealers'
lots at the end of the fourth quarter totalled 97,000 units, 6
percent above the previous quarter and 34 percent above the same
quarter the previous year. The average sales price of the units
sold in the fourth quarter was $39,100, up 7 percent from the
previous quarter and 12 percent higher than the year-earlier price.

Builders' View of Housing Market Activity 

The National Association of Home Builders (NAHB) conducts a monthly
survey focusing on builders' views of the level of sales activity
and their expectations for the near future. NAHB uses these survey
responses to construct indices of housing market activity. (The
index values range from 0 to 100.) The first-quarter value for the
index of current market activity for single-family detached houses
stood at 57, up 1 point from the fourth-quarter level of 56 and up
13 points from last year's first quarter. The index for future
sales expectations, 62, was the same as the fourth-quarter value,
but up 14 points from last year's level. Prospective buyer traffic
had an index value of 42, the same as the fourth-quarter value, but
17 points above last year's level. NAHB combines these separate
indices into a single housing market index that mirrors the three
components quite closely; in the first quarter, this index stood at
54, nearly identical to the fourth-quarter level, but up 15 points
from last year.

-----------------------------

HOUSING FINANCE

Mortgage Interest Rates

As was true last quarter, mortgage interest rates for all
categories of loans fell from both the previous quarter and the
quarter a year earlier. The contract mortgage interest rate for 30-
year, fixed-rate, conventional mortgages reported by Freddie Mac
was 7.28 percent in the first quarter, 6 basis points lower than
the previous quarter and 153 basis points lower than the same
quarter last year. Adjustable-rate mortgages in the first quarter
were going for 5.43 percent, 22 basis points below the previous
quarter and 122 basis points below the same quarter last year.
Fixed-rate, 15-year mortgages, at 6.78 percent, were down 9 basis
points from last quarter and 166 basis points from the same quarter
last year. The FHA rate fell 34 basis points during the quarter and
184 basis points from the same quarter last year.

FHA 1-4 Family Mortgage Insurance

Applications for FHA mortgage insurance on 1-4 family homes were
received for 313,000 (not seasonally adjusted) properties in the
first quarter of 1996, up 46 percent from the previous quarter and
up 93 percent from the first quarter of 1995. Endorsements or
insurance policies issued totalled 179,800, up 19 percent from the
fourth quarter of 1995 and up 36 percent from the first quarter of
1995. Endorsements for refinancing were 64,300, up 245 percent from
the fourth quarter of 1995 and up 437 percent from a year earlier.
Federal furloughs have most likely influenced activity levels.

PMI and VA Activity

Private mortgage insurers issued 244,500 policies or certificates
of insurance on conventional mortgage loans during the first
quarter of 1996, down 9 percent from the fourth quarter, but up 34
percent from the first quarter of 1995; these numbers are not
seasonally adjusted. The U.S. Department of Veterans Affairs
reported the issuance of mortgage loan guaranties for 87,400
single-family properties in the first quarter of 1996, up 38
percent from the previous quarter and up 39 percent from the first
quarter of 1995. As with FHA insurance, the Federal furloughs
probably affected the activity level.

Mortgage Originations by Loan Type, 1-4 Family Units

The total value of mortgage originations for 1-4 family homes was
$188.8 billion in the fourth quarter of 1995, up 1 percent from the
third quarter of 1995. Three of the four loan types decreased in
volume during the quarter: VA-guarantied mortgages fell 7 percent,
privately insured mortgages decreased 6 percent, and FHA-insured
mortgages declined 2 percent. Uninsured mortgage volume grew 3
percent. The changes from the fourth quarter of 1994 were mixed.
Although the overall increase was 39 percent, both FHA and VA
mortgages fell 4 percent and 11 percent, respectively. Uninsured
mortgages increased 59 percent, while privately insured mortgages
rose 14 percent. Market shares changed very little during the
fourth quarter of 1995, although changes from the previous year
were more pronounced.

Residential Mortgage Originations by Building Type

Residential mortgage originations totalled $199.7 billion in the
fourth quarter of 1995, up 2 percent from the third quarter and up
39 percent from the fourth quarter of 1994. A nearly identical
pattern exists for single-family mortgages. The financing volume
for multifamily (5+) units totalled $10.9 billion in the fourth
quarter, up 14 percent from the previous quarter and up 40 percent
from the fourth quarter of 1994.

Mortgage Originations by Lender Type, 1-4 Family Units

Mortgage companies increased their volumes during the fourth
quarter of 1995 to $108 billion, a 3-percent increase from the
third quarter of 1995 and a 70-percent gain from the fourth quarter
of 1994. Their market share rose only slightly, although they
continue to dominate the market with a 57.2-percent share. All
other lenders experienced decreased volumes: Mortgage loans made by
commercial banks dropped 1 percent from the third quarter, although
their volume was up 17 percent from the fourth quarter of 1994.
Overall, their share fell slightly to 23.7 percent of the market.
Mutual savings banks, with a market share of 4 percent, wrote $7.6
billion in loans, a 1-percent decrease from the previous quarter.
Mortgages written by savings and loan institutions, which made
$27.0 billion in loans, fell 2 percent for the quarter and dropped
slightly in their market share. 

Delinquencies and Foreclosures

Total delinquencies were at 4.25 percent at the end of the fourth
quarter of 1995, nearly identical to the third quarter and up 2
percent from the fourth quarter of 1994. Ninety-day delinquencies
were at 0.66 percent, down 11 percent from the third quarter and
down 10 percent from the fourth quarter of 1994. During the fourth
quarter of 1995, 0.30 percent of loans entered foreclosure, up 3
percent from the previous quarter, but down 9 percent from the
fourth quarter of 1994.

-----------------------------

HOUSING INVESTMENT

Residential Fixed Investment and Gross Domestic Product

Residential Fixed Investment (RFI) for the first quarter of 1996
was $300.7 billion, up 1 percent from the fourth quarter of 1995
and up 4 percent from the first quarter of 1995. As a percent of
the Gross Domestic Product, RFI was 4.0 percent, the same as last
quarter and the first quarter of 1995.

----------------------------

HOUSING INVENTORY

Housing Stock

The estimate of the total housing stock as of the first quarter of
1996, 113,258,000 units, was a statistically insignificant 0.2
percent above the fourth quarter of 1995 and 0.8 percent above last
year. The number of occupied units followed a similar pattern.
Owner-occupied homes showed a statistically insignificant 0.1
percent increase over the fourth quarter of 1995 and a 2.2-percent
increase from the first quarter of 1995. Rentals showed no change
from last quarter, but declined 2 percent from last year. Vacant
units rose a statistically insignificant 1.3 percent from last
quarter and increased 1.6 percent from the previous year.

Vacancy Rates

The national rental vacancy rate in the first quarter of 1996, at
7.9 percent, was up 0.2 percentage points from last quarter and up
0.5 percentage points from last year. The homeowner vacancy rate,
at 1.6 percent, was unchanged from last quarter and was up a
statistically insignificant 0.1 percentage points from last year.

Homeownership Rates

The national homeownership rate was 65.1 percent in the first
quarter of 1996, unchanged from the fourth quarter and up 0.9
percentage points from the first quarter of 1995. The homeownership
rate for minority households also remained unchanged from the
fourth quarter and the rate for young households, at 57.7 percent,
was down a statistically insignificant 0.2 percentage points.

-----------------------------

REGIONAL ACTIVITY

The following summaries of housing market conditions and activities
have been prepared by economists in the U.S. Department of Housing
and Urban Development's (HUD's) field offices. The reports provide
overviews of economic and housing market trends. Each regional
report also includes a profile of a selected housing market that
provides a perspective of current economic conditions and their
impact on the local housing market. The reports are based on
information obtained by HUD economists from State and local
governments, housing industry sources, and from their ongoing
investigations of housing market conditions carried out in
connection with the review of HUD program applications.

------------------------------

NEW ENGLAND

Employment gains in New England were modest during the first
quarter of 1996. Nonfarm employment increased by 88,500 jobs, or
1.4 percent, between February 1995 and February 1996. The
unemployment rate as of February was below the national average in
five of the six New England States. New Hampshire had the lowest
unemployment rate, at 3.5 percent, while Rhode Island had the
highest, at 5.9 percent. 

Massachusetts had a nonfarm employment increase of 48,100 jobs from
February 1995 to February 1996. Vermont and Massachusetts were the
only two States in New England to post a gain in manufacturing
employment. Rhode Island's largest increase was in service-sector
jobs (9,500), mainly due to an increase in health services and
retail trade. Connecticut and Maine also had large increases in
service jobs, with 9,600 and 4,100 jobs, respectively. An unusually
snowy Winter season brought many skiers to New England.
International travellers are one of the fastest-growing groups of
visitors, who are helping to generate new jobs in the ski areas. 

For the region as a whole, residential building activity declined
for the first 3 months of 1996 compared with the same period 1 year
ago. Building permits totalled 6,200 units for January through
March 1996, down from 6,600 units in the same quarter a year ago.
A 12-percent decline in Massachusetts overshadowed slight increases
in Maine, Rhode Island, and Vermont. Single-family permit activity
was fairly constant for the region, while multifamily permits
declined by almost 25 percent. 

Sales of existing homes increased in Connecticut and Massachusetts
during the fourth quarter of 1995 compared with the same quarter of
1994. In Connecticut sales volume increased 21 percent in 1995, to
53,600. Massachusetts had an increase of 26 percent in 1995, to
79,800. 

Sales prices in the Boston area were essentially unchanged at a
median of $176,600 in the fourth quarter of 1995 compared with the
fourth quarter of 1994. No major changes are anticipated in housing
prices during the first half of 1996. The Hartford area saw
existing prices decline from $130,800 to $127,200 from the fourth
quarter of 1994 to the fourth quarter of 1995. 

The condominium market in Massachusetts improved in 1995. Local
sources report that statewide listings increased by 40 percent for
the year. Condominium sales increased 29 percent, from 1,532 in
1994 to 1,983 in 1995. The average selling price increased 4.5
percent, from $110,398 to $115,398. 

Rental markets in New England remain in good condition in most
areas with the exception of Hartford, Connecticut. The
recordbreaking snow in most of New England kept planned multifamily
rental construction on hold. Demand has been modest, however,
preventing further tightening of the rental market. Boston
continues to experience a strong rental market with rents up about
3 percent over a year ago. 

Spotlight on 
Hartford, Connecticut 

The Hartford area continues to suffer employment and population
losses. For the 12 months ending February 1996, nonfarm employment
averaged 584,050, a decrease of about 4,400 jobs from the previous
comparable period. This job loss followed an increase of almost
9,250 jobs during the 12-month period ending February 1994.
Although there has been a net employment increase over the 2-year
period, the jobs added have been lower paying than those lost.
Unemployment has decreased steadily, from a high of 7.7 percent in
1992 to 5.6 percent in 1995. Downsizing and consolidation are still
the watchwords of the Hartford economy. Even though there is a
sense that job losses are moderating, there are still many
uncertainties in the insurance and the defense industries. 

Home sales in the Hartford metropolitan area decreased by 16
percent in 1995, after increasing an average of 9.5 percent
annually from 1991 to 1994. The median sales price, $122,500 in
1995, declined each year from 1989 through 1995 by an average of
about 4 percent. February 1996 data indicate a continued drop in
the number of sales, but a small increase in median price relative
to February 1995. The city of Hartford has a serious housing
abandonment problem that is depressing housing values and has
contributed to a 20-percent decline in the median sales price over
the past 2 years.

After several years of increased residential building activity,
units authorized by building permits declined in 1995 to about
2,500 units. This was about a 19-percent decline from the annual
level of approximately 3,000 units from 1992 to 1994. In January
and February of 1996, the number of units authorized by building
permits was down by about 25 percent compared with the same period
in 1995. The weakness in the market was exacerbated by the severe
winter weather recently experienced in the Northeast. There is also
the continuing trend of little multifamily housing construction; 94
percent of units authorized since 1991 have been single-family
housing.

The rental market in the Hartford metropolitan area remains weak,
although there are some significant variations in market conditions
depending on the location and type of stock. The city of Hartford
has a significant vacancy problem with resulting property tax and
abandonment repercussions. Rents have stabilized at lower levels,
but rental demand is weak. Some middle- to upper-income rental
markets, such as the western submarkets and the Manchester/Buckland
area, are considerably stronger. These areas have had high demand,
low vacancy rates, and small rental increases. Even though there
has been very little apartment construction, it will still take a
few years for the metropolitan rental market to recover fully.

------------------------------

NEW YORK/NEW JERSEY

Job creation in New York State continues to be sluggish. The
recession that lasted from 1989 to 1992 eliminated 580,000 jobs, of
which only one-third have been regained. In 1995 New York added
52,600 nonfarm jobs, an increase of 0.7 percent. The largest
percentage employment gain during this period was in the services
sector, which increased 2.9 percent. Construction jobs increased
0.4 percent; finance, insurance, and real estate declined 1.7
percent; and manufacturing continued its long-term decline, falling
1.2 percent. 

New Jersey's economy has been growing more rapidly than that of New
York. Since 1992 it has regained 67 percent of the jobs lost in the
1989 to 1992 recession. In 1995 New Jersey gained 36,800 jobs, an
increase of 1 percent. New Jersey's economy is likely to continue
to grow moderately in 1996 despite the prospect of more job losses
through corporate downsizing, most notably the elimination of 7,000
jobs at AT&T.

The economies of New York and New Jersey have been significantly
affected by weakness in the New York City metropolitan area. The
Regional Plan Association recently completed a 5-year study that
revealed that the New York City metropolitan region rated last in
employment growth among the Nation's 15 largest metropolitan areas,
generating only an 8-percent increase from 1982 through 1992. The
study's report recommended that the region rebuild its urban
centers, connect the now-separate transit systems into an
integrated whole, and restructure the local education system to
strengthen poorer districts.

Some signs of optimism are visible in New York City's economy.
Office building vacancies have been declining for the past 3 years,
and commercial property that was unsold for years has recently
changed hands. Major brokerage houses on Wall Street that once
contemplated relocating have now decided to remain, due in large
part to significant city tax breaks. Tourism in New York City has
soared, spurring a growth in retail sales. More feature films and
television series are being shot in the city than at any time since
the 1950s. Software designers and computer artists have formed a
cluster of startup companies. A recent study indicated that there
were more than 4,200 such companies employing 71,500 workers in
1995, up from 28,500 workers in 1992.

Housing markets in New York State and New Jersey have not responded
to declines in interest rates because of the limited growth in
employment and concerns about corporate downsizings. In New York
State, home sales in 1995 decreased to 115,600 from 124,800 during
the previous year, although the median sales price increased from
$111,700 to $115,200. In New Jersey sales in 1995 declined to
138,000 from 145,000, and the median sales price declined 5
percent, to $138,300. 

A stagnant housing market on Long Island is attributable to the
changing economy. Since 1993 this region has regained about half of
the jobs lost during the recession of 1989-1992. However, the
highly paid defense-related jobs that were eliminated have been
largely replaced by low-paying retail and service-related jobs.
Building permits for single-family homes in Nassau and Suffolk
Counties declined to 3,500 in 1995 from 3,720 in the previous year.
Home prices tended to be strongest in western Nassau County and
weakest in southern Suffolk County and the Port Jefferson area of
northern Suffolk County. Demand continues to be weak for
condominiums and townhouses, while new single-family homes in the
$250,000 to $350,000 range are in the greatest demand. Existing
homes selling for more than $350,000 have been slow to move.

Westchester County is experiencing strong demand for rental
housing. Rental apartments are scarce, as 5,000 rental units have
been converted to condominiums or cooperatives since 1980. There
are now about 10 rental projects being built or in the planning
stages. These developments will be primarily garden complexes with
swimming pools and parking garages.

In northern New Jersey, home sales volume and prices declined in
1995. The median sales price for a home in 1995 was $187,900
compared with $190,100 in 1994, while the number of homes sold fell
from 59,900 to 55,500. Homebuilding was also cut back in most
sections of New Jersey, particularly in Morris County (20 percent)
and in Ocean County (30 percent). 

The Manhattan rental market remains very strong. Higher rental
prices have triggered a significant demand for smaller condominium
and cooperative units. More than half of the units sold during 1995
were studio and one-bedroom units. The average sales time for these
units declined to 6.5 months from 10 months in 1994. The high end
of the market remains the tightest. 

Spotlight on
Buffalo, New York 

The Buffalo-Niagara Falls metropolitan area, which includes Erie
and Niagara Counties, continues to experience population losses due
to a declining economy. Between 1990 and 1995, the population of
the metropolitan area decreased by more than 5,200 to 1,184,000
persons. 

Nonagricultural employment dropped by approximately 2,400 jobs
between 1994 and 1995. Job losses occurred in the construction,
services, and government sectors, as well as in finance, insurance,
and real estate. During the same period, the unemployment rate in
the area actually declined, reflecting out-migration and
retirements precipitated by plant closings. The unemployment rate
was 5.4 percent in 1995, down from 6 percent in 1994.

The area's automotive industry, however, remains strong. More than
$120 million has been invested in the past 2 years at American Axle
& Manufacturing, the Tonawanda General Motors engine facility, and
the Woodlawn Stamping Plant. The Tonawanda engine plant is one of
the largest engine manufacturing facilities in the Nation,
producing from 8,000 to 9,000 engines per day. It was recently
announced that General Motors is considering another $10 to $15
million investment in the plant to allow for construction of a new
2.2-liter engine.

Other major construction projects under way in Buffalo include a
$240 million expansion project at Roswell Park Cancer Institute;
the $122.5 million Marine Midland Arena, the new home of the
Buffalo Sabres professional hockey team; and a $186 million
expansion of the Greater Buffalo International Airport.

Niagara County is expected to benefit from construction of a gaming
casino at Maple Leaf Village in Niagara Falls, Ontario (Canada).
This facility, which will open by Christmas, may produce spinoff
employment in Niagara County. A Hard Rock Cafe entertainment
complex, for example, is to be constructed in downtown Niagara
Falls.

Since 1990 housing construction in the Buffalo-Niagara Falls area
has averaged 2,900 units per year, 75 percent of which has been
single-family housing. Activity has been concentrated in suburban
areas, particularly Amherst; Clarence; and more recently,
Lancaster. Hamburg, West Seneca, and Orchard Park have been popular
areas for construction south of the city. In Niagara County housing
construction has been concentrated in Lockport and Wheatfield.

Multifamily housing construction in Buffalo and Niagara Falls has
typically required some form of subsidy because of depressed rental
market conditions. Recently there has been some renewed developer
interest in the Chippewa Street and Theater District areas of
downtown Buffalo. Several HUD-subsidized and affordable housing
projects also have been approved for construction in the city. 

New York State Association of Realtors data reveal that the median
sales price of an existing single-family housing unit in Erie
County declined from $82,900 to $77,400 during 1995. Home sales
volume also declined from 8,338 units in 1994 to 7,308 units in
1995. In Niagara County housing sales decreased by more than 20
percent, and the median sales price of an existing home declined by
3.3 percent from 1994 to 1995. 

The rental housing markets in the central cities of the
metropolitan area are characterized by high vacancy rates (10
percent or higher) and flat rents. Conditions are better in the
more affluent suburban areas, where high-rent developments are
commanding rent increases of more than 2 percent. 

------------------------------

MID-ATLANTIC

A series of January snowstorms followed by floods and a March
strike that affected automobile workers and suppliers in Wilmington
and Baltimore produced a static first-quarter economy. Between
February 1995 and February 1996, employment was up by only 0.6
percent. The Mid-Atlantic economy in 1996 is expected to continue
on a path of slow growth comparable to 1995, when regional
employment grew just 1.4 percent. Only Delaware exceeded the
national growth rate last year, adding 10,400 jobs for a
2.9-percent gain. The net loss of 15,400 jobs (2.3 percent) in the
District of Columbia represented a continued downward cycle in jobs
and population. West Virginia experienced a drop in its
unemployment rate, from 8.9 percent in 1994 to 7.9 percent in 1995,
the lowest in 20 years. Unemployment stayed below 6 percent in
Maryland and Pennsylvania and was 4.3 and 4.5 percent,
respectively, in Delaware and Virginia. In the District of
Columbia, unemployment hovers in the 8- to 9-percent range.

The slow growth masks the transition of the Mid-Atlantic economy
from the traditional mining, manufacturing, and government sectors
to more retail and skilled services occupations. Employment in
services and trade expanded by 3 percent last year, adding 190,000
jobs in the region, which more than offset declines in both
manufacturing and government sectors. Bank consolidations in
Maryland and Pennsylvania resulted in the loss of 10,300 jobs (1.5
percent) in that sector. The 1-percent gain in transportation and
public utilities (6,200 jobs) was due to expansion of utility jobs
in the Baltimore-Washington corridor. This growth, however, is not
likely to be sustained. The recent merger of Baltimore Gas and
Electric Company and Potomac Electric Power Company will eliminate
10 percent of their workforces (1,250 jobs) starting in 1997.

In West Virginia, where job growth averaged 1.9 percent last year,
gains were evident in all sectors except mining and government.
State economic incentive programs have resulted in the addition of
75,000 jobs and 500 new businesses over the past 7 years, including
a $150 million jet plane manufacturing plant in Martinsburg that
broke ground in March. The plant, which will employ 800 workers by
1998, is a partnership of Taiwan investors with State venture
capital and construction unions. State successes in attracting
plastics, chemicals, and wood products manufacturers, as well as
health-care companies, have created jobs in Charleston, Clarksburg,
and the eastern panhandle counties. 

In the Philadelphia area, where suburban job gains in 1995 of 1.2
percent (18,500 jobs) offset a 1.6-percent loss in the city (11,100
jobs), the announcement of a new $70 million bank operations center
by PNC Bank Corporation will generate 1,100 jobs in the city. The
investment of $14 million by PNC Bank will be matched by $6.5
million in State infrastructure grants and customized job training
programs. Although overall retailing is strong and growing, the
closing of 26 Clover discount stores will eliminate 4,000 jobs.
Other job losses in the next several years include the closing of
the Caterpillar plant in York, Pennsylvania, that will eliminate
1,100 jobs and a workforce reduction of 1,500 at Dupont in
Wilmington due to reduced fiber demand. 

Home mortgage rates remained low until late February, prompting
unexpected traffic at open houses and high refinancing activity. In
Virginia the 9.5-percent increase in home sales in February over
last year was considered a positive sign for Spring, but sales were
down slightly or stable in Hampton Roads, Northern Virginia, and
Richmond. First-quarter home sales were up 13 percent in the
Pittsburgh region, following a slight increase last year. In West
Virginia the sales market is being bolstered by a State program for
first-time homebuyers that provides 6-percent loans.

The market for new homes has been strong so far in 1996 in the
Washington, D.C., area, where February new home sales were
one-third higher than last year. Fairfax County experienced a 36-
percent increase, and Montgomery County showed a 27-percent gain.
Increased Northern Virginia activity is attributed to rapid gains
in service jobs, particularly in the computer and
high-technology fields. 

Pittsburgh sales and rental markets are being revived by the
assistance of the Pittsburgh Development Fund (PDF), a $60 million
loan vehicle created by a city bond issue last year. In March
construction started on a 232-unit highrise rental project along
the Allegheny River downtown. Rents will range from $700 to $900
per month. PDF assistance, also used for sales housing, is funding
a 30-unit, mixed-income development in the $95,000 to $140,000
price range and a 26-unit project in southside Pittsburgh. Sales
demand has been strong at both locations and at least one
additional phase is planned.

In Philadelphia strong demand for downtown rentals is being met by
conversion of upper-floor office space to residential uses. HUD
participation has been initiated by the first FHA application for
insurance of a central business district office building being
converted to efficiencies and one-bedroom units. Rents are being
proposed at $550 to $650 per month. Comparable projects have very
few vacancies.

Spotlight on
Baltimore, Maryland 

With a 1990 population of nearly 2.4 million, the Baltimore
metropolitan area consists of the city of Baltimore and six
counties. Baltimore City's population of 736,000 in 1990 accounts
for about 30 percent of the metropolitan area total. The city
remains a major employment center of the metropolitan area,
comprising 36 percent of all area employment. The economy has been
in transition, from manufacturing to service producing.
Manufacturing employment dropped from 1 in 5 jobs in 1970 to less
than 1 in 10 by 1990, while service jobs increased by more than
170,000 during the 1980s. 

The recession of the early 1990s hit the Baltimore area hard, and
recovery continues to be spotty. Job gains last year averaged 1.4
percent, slightly below the overall gain for Maryland. Total
metropolitan employment, however, is down 1 percent from 1990 to
1995, after increasing 19 percent from 1980 to 1990. The number of
jobs in the city of Baltimore dropped 13 percent from 1990 to 1995,
with losses in all industrial sectors except government. The
February 1996 average unemployment rate of 5.4 percent for the
metropolitan area represents a range of 4.7 percent in the
surrounding counties to 7.4 percent in Baltimore City. 

The most serious problems affecting the Baltimore economy are
defense cutbacks, declines in the construction and real estate
industries, and bank mergers. The downtown Baltimore office market
had been particularly hard hit by real estate, finance, and bank
downsizing, as well as by the movement of tenants to the suburbs or
other office parks in the city. In addition, manufacturing,
distribution, and warehouse space, particularly near
Baltimore-Washington International Airport, has been in excess
supply, and surplus office space in Columbia and Baltimore County
is still being absorbed. The T. Rowe Price (mutual funds)
announcement of a multiyear expansion that will add thousands of
workers will help restore the office market balance in Baltimore
County's Owings Mills.

The recent expansion of distribution facilities in suburban
locations will help restore market balance to that sector. The
area's excellent transportation system and the thriving Port of
Baltimore are factors in the growth of distribution facilities.
Efforts are also under way to boost tourism and convention
business. Major developments include Orioles Park at Camden Yards,
the Columbus Center (biotechnology), an expanded convention center
and a new children's museum, both to open in 1996, and the National
Football League Ravens stadium to break ground this year. Continued
growth in major medical facilities in the city and steady gains in
service jobs are forecast.

Single-family home construction in the metropolitan area has
averaged about 10,500 units a year since 1990, down 11 percent from
the 1980 to 1989 annual volume. Half of the production is in
Baltimore and Anne Arundel Counties, with Anne Arundel County now
more popular and Baltimore County capturing a lower market share in
recent years. Carroll County, located northwest of Baltimore
County, is the only submarket with greater single-family production
this decade compared with the last. 

Currently, the strongest sector of the new home market is
townhouses, which outnumber detached single-family homes in both
production and sales. Townhouses are popular in both the city and
suburban submarkets. The typical price is about $120,000; those
with garages are $15,000 more. New single-family detached houses
are priced primarily at $200,000 and above. Existing home sales in
1995 were down 6 percent from 1994, with prices showing little
change. New home sales in 1995 were up 4 percent due to the
strength of the townhouse segment, with the last quarter of the
year showing surprising growth.

The demolition of highrise family public housing projects in the
city started last summer with the removal of Lafayette Homes and
will continue in 1996, creating land for the redevelopment of 779
low-density units on those sites. An additional 1,342 housing
vouchers will be provided to former residents who will seek
private-market housing, and more than 800 families will be given
opportunities for homeownership through counseling. 

The Baltimore metropolitan area rental market is stable. Vacancies
have declined since the early part of the decade when many
submarkets reported double-digit vacancy rates. Apartment
construction, at about 1,550 units a year during the 1990s, is
about half the level of the 1980s. Rents are balanced due to
sluggishness in demand, and concessions are still common. About
half of the recent rental housing production is occurring in
western Anne Arundel County, which had been under a sewer
moratorium during much of the past decade. Tax credit projects for
the elderly continue to account for much of the remaining apartment
development and are being readily absorbed. 

------------------------------

SOUTHEAST

Employment growth continues at a moderate pace in the Southeast,
with February 1996 employment 2 percent above year-earlier figures.
Employment changes ranged from a 4.1-percent increase in Georgia to
a slight decline in Kentucky. The unemployment rate in the
Southeast declined marginally during the period to 5.6 percent. The
strongest improvement in unemployment rates occurred in Alabama;
the largest increases occurred in Ponce and Mayagez, Puerto Rico,
and Augusta, Georgia.

A substantial number of announcements for job expansions occurred
during the quarter. Alco Standard Corporation is expected to
increase employment in Macon, Georgia, by 500 jobs over the next 4
years. An expansion of the B-1b bomber wing at Warner Robins Air
Force Base, Georgia, will add 1,100 jobs during the next 8 years.
A new casino opening in June in Tunica County, Mississippi, will
employ 3,600 persons when fully staffed. Toyota Motor Corporation
announced a new North American Headquarters in Boone County,
Kentucky, which will add 500 to 600 jobs. Cleveland, Tennessee,
will gain approximately 500 jobs at the Maytag Corporation as the
appliance maker consolidates its stove and range production.
Atlantic Telecom, a manufacturer of telephone circuits, announced
new operations that will add 400 jobs in Aguadilla, Puerto Rico.

There have also been a number of employment downsizings and plant
closures announced recently. In Boca Raton, Florida, the
Sensormatic Electronics Corporation, a maker of electronic and
video surveillance equipment, announced a reduction of 775 of its
current employees. The Department of Energy's (DOE's) Savannah
River Site in Augusta, Georgia, which has lost approximately one-
third of its workforce over the past 3 years, announced that
another 1,950 jobs will be terminated by July 1, 1996, with
additional cutbacks of 500 to 800 jobs possible during the next
fiscal year. Most of the proposed layoffs will come from the two
main contractors at the facility.

During the first 3 months of 1996, single-family housing permit
volume in the Southeast increased 12 percent over last year. In
Florida single-family units authorized by building permits in the
first quarter of 1996 increased by 5 percent over the same period
in 1995. Multifamily housing permit activity declined in that
State, however. Increased production in Orlando has led to
increases in vacancy rates estimated at 11 percent. The
Jacksonville Planning Department's survey of apartments recently
reported an occupancy rate of 95 percent in the city. This rate is
likely to be reduced in the coming year by new construction. During
the first 2 months of 1996, almost 1,400 multifamily units were
authorized in Jacksonville, compared with only 1,862 units
authorized in all of 1995. Almost 6,000 additional rental units are
at some stage of planning in the Jacksonville area. 

In Georgia the Atlanta area had the highest construction volume in
the Nation in 1995, ranking first in single-family housing permits
and second in multifamily housing permits issued. The number of
first-quarter permits was high in the first quarter of 1996, while
multifamily permit volume was far off the scorching pace of last
year. The Augusta Metropolitan Statistical Area continues to
experience weak market conditions, due in part to the large number
of layoffs at DOE's Savannah River Site. According to the local
apartment association, Augusta's apartment vacancy rate in March
1996 was more than 12 percent.

Tennessee experienced a strong increase in both single-family and
multifamily production in 1995. Thus far in 1996, single-family
units authorized by permits have increased from year-earlier
figures, but multifamily volume has decreased. The Multiple Listing
Service reports February sales in Memphis up 6 percent over
January. Occupancy in apartment developments slipped slightly in
1995 as new units were added to the market. The sales market is
also strong in Nashville, with the Board of Realtors reporting an
increase in sales of houses and condominiums from year-earlier
figures. 

Although North Carolina experienced modest declines in the number
of single-family and multifamily units authorized by building
permits in 1995, volume is up modestly thus far in 1996. New
single-family housing construction was particularly strong in the
Wilmington area, where starts equalled 8 percent of the total
inventory of owner-occupied units. Rental housing construction
remains solid in the major urban areas of Raleigh, Charlotte,
Greensboro, and Durham.

In South Carolina statewide increases in multifamily housing
production continue; permits increased one-third in 1995 compared
with 1994, and rose more than 50 percent in the first quarter of
1996 over the same quarter of 1995. Single-family housing
production in the Charleston area declined by 15 percent as the
closing of the Charleston Naval Shipyard depressed the local
market. As workers have been released from the shipyard, the rental
vacancy rate has risen and now exceeds 10 percent.

In Alabama single-family production volume increased sharply in the
first 3 months of 1996, continuing last year's trend. Multifamily
housing production in the State was up from its pace in 1995; in
Birmingham it more than doubled in the first quarter of 1996,
accounting for more than one-fourth of the State's volume. The
rental market in Birmingham has softened recently, with vacancy
rates rising from about 5 percent in mid-1995 to 9 percent
currently. An additional 1,000 to 1,500 units are either planned or
under construction in the Birmingham area. 

Puerto Rico has experienced significant increases in construction
volume of both single-family and multifamily housing. FHA
endorsements increased 14.5 percent between February 1995 and
February 1996, with strong sales of multifamily condominiums.
Industry sources report strong demand for rental units,
particularly for units priced at $400 to $600 per month.

Spotlight on
Winston-Salem, North Carolina 

Winston-Salem, with an estimated current population of 165,000, is
the fourth-largest city in North Carolina. The population of the
city has increased by nearly 15 percent since the 1990 census.

While the tobacco industry, which employs more than 10,000 persons,
still dominates the local economy, growth within several emerging
employment sectors suggests that the local economy has begun to
diversify. Gains in health and educational services reflect the
success of the local economic strategy in focusing on the
community's hospitals and universities as bases for future growth.
The impressive growth of these two sectors holds promise that a
restructuring of the economy is well under way. The local economy
has become more competitive in a number of employment sectors, with
the most impressive gains occurring in services and industrial
machinery manufacturing.

Employment gains in the immediate Winston-Salem area have been
modest in the past year. At 144,250 jobs, total employment is up
only 0.6 percent for the 12-month period ending December 1995. The
unemployment rate has declined from 4 percent to 3.5 percent.

Based on projections of population and household growth in the
Winston-Salem area, the demand for new housing will average an
estimated 2,250 units annually during the next 2 years, consisting
of 1,650 sales housing units and 600 multifamily rental units.

Recent rates of housing construction have been in general balance
with prospective demand. There were 737 multifamily units and 1,467
single-family houses authorized by building permits in 1995. These
moderate rates of production are consistent with anticipated rates
of employment and household growth in the area and should result in
continued equilibrium in the local housing market.

The median sales price for new housing in the Winston-Salem area
during 1995 was $135,000, with about one-third priced between
$100,000 and $150,000. Home prices are expected to follow last
year's pattern, with nearly 60 percent of the new houses priced
less than $150,000.

According to the September 1995 survey by the Triad Apartment
Association, the apartment vacancy rate in Winston-Salem is a very
low 2.8 percent, down from 4.2 percent recorded in March 1995. The
most active submarkets to the west and northwest of the city
reported vacancy rates of 1.6 percent and 2.5 percent,
respectively. The average rent in September 1995 was about $500 for
a two-bedroom apartment, an increase of about 5 percent since March
1995.

------------------------------

MIDWEST

The Midwest has continued to experience moderate employment growth,
adding 360,000 jobs during the 12 months ending February 1996. The
manufacturing sector recently has had a mixed performance. Capital
goods and steel producers have been operating at high levels, but
automobile manufacturers are cutting back production as sales
decline. The region's employment outlook is favorable for the
second quarter of 1996, particularly in the retail trade,
construction, and machinery manufacturing sectors.

Employment growth has been strong throughout Ohio. Michigan's
employment growth slowed during the first quarter of 1996 due to
cutbacks in motor vehicle production. In Minnesota record
employment in retail trade and services in February helped reduce
unemployment to 3.1 percent, the lowest rate in the region.
Indiana's steel industry, which represents 22 percent of U.S.
production, is prospering as a result of stronger demand for steel.
Three companies are investing more than $1 billion combined in new
steel plants in Indiana and will hire up to 1,100 workers by the
year 2000. Of the 94,800 new jobs created in Illinois in the 12
months ending February 1996, two-thirds were added in the Chicago
metropolitan area. 

In 1995 single-family building permits were issued for almost
175,000 units in the Midwest, the fourth-highest annual level in
the past 20 years. Homebuilding remained strong in the first
quarter of 1996, boosted by low mortgage rates and healthy job
growth in the region. Through March permits were issued for almost
34,000 single-family units, a 15-percent increase over the first 3
months of 1995. Activity was up in all States, led by Indiana with
the largest percentage increase -- 23 percent. Multifamily building
permit activity was off slightly in the first quarter of 1996.

The sales market in the Chicago area remains strong. Building
permits were issued for 24,500 single-family units last year, the
third-highest level among the Nation's metropolitan areas. Existing
home sales declined by about 7 percent from 1994 to 1995, but new
home sales were up 5 percent. In Chicago's Lawndale community, one
of the city's poorest neighborhoods, new homes are being sold in
the $170,000 to $190,000 price range. In the first 2 months of
1996, single-family building permits were issued for 2,730 units,
18 percent above the year-earlier level. Sales of existing homes --
2,745 units in January 1996 -- were up 15 percent over a year
earlier. 

The Indianapolis area had a solid year for single-family home
construction in 1995, with 10,280 new homes permitted. Activity has
remained brisk; through February 1996 building permits were issued
for 1,350 new homes in the metropolitan area compared with 1,050 a
year earlier. One builder reported that sales of new homes priced
between $90,000 and $120,000 more than doubled from last year. 

In the Columbus, Ohio, metropolitan area, a developer of affordable
housing will build 1,000 new homes in the city during the next 5
years. The new homes are expected to sell for $80,000 to $120,000. 

In the Minneapolis-St.Paul area, permits for new homes were issued
for 2,129 units during the first quarter of 1996 compared with
1,931 units in the first quarter of 1995. Near downtown Minneapolis
developers are proposing 650 riverfront townhouse and condominium
units for sale, the single-largest homeownership project in the
area. The high turnout of prospective buyers at the Parade of Homes
Spring Preview held throughout the Twin-Cities area in March has
raised builders' expectations of further sales gains in 1996. 

In 1995 FHA insured 91,780 homes in the Midwest region for a total
mortgage amount of $6.8 billion, 15 percent of the national total.
Activity was particularly strong in Illinois, Michigan, and Ohio,
where FHA insured more than 60,000 homes combined. The Chicago
metropolitan area ranked first in FHA volume in the Nation's
metropolitan areas, with 20,677 FHA-insured homes and a mortgage
total of $2 billion. 

Apartment occupancy remains at high levels in rental markets
throughout the Midwest. Surveys of 20 market areas showed occupancy
in the 94- to 97-percent range in the first quarter of 1996.
Absorption of high-rent units in the Cincinnati area is progressing
well; a 168-unit project in north Hamilton County is leasing 15 to
18 units a month. In the Indianapolis area, where 3,000 units of
rental housing will enter the market during the next 18 months, one
developer of high-rent units is reporting strong absorption of 20
units a month for the past several months. In suburban Chicago
about 1,700 rental units are under construction and another 1,300
units are expected to begin construction in the next 6 months. The
total is more than double the 1,200 apartment units that composed
the production pipeline a year earlier. Especially active areas are
west suburban Du Page and Kane Counties. A January 1996 survey of
103,000 rental units in the Chicago area revealed a 97-percent
occupancy level, the highest in 8 years. 

Spotlight on
Detroit, Michigan 

Detroit's economy performed well in 1995. Strong employment growth
of about 60,000 jobs has kept the unemployment rate low. The
metropolitan area's unemployment rate of 4.7 percent in February
1996 remains well below the U.S. rate. Business services and retail
trade have provided the largest number of new jobs and, together
with construction, have accounted for a major share of recent
employment gains. However, economic activity in the metropolitan
area slowed toward the end of the first quarter of 1996 when a
strike shut down 26 General Motors Corporation assembly plants
nationwide. 

Moderate employment growth is expected for 1996, boosted by a
healthy housing construction sector and expansion of services.
Detroit's Empowerment Zone is attracting businesses to the city and
stimulating residential development near downtown after years of
decline. In the past 2 years, 15 industrial companies have
relocated or expanded in the zone, investing more than $1 billion,
adding 610 workers, and retaining more than 3,000 jobs. Most
investment is by U.S. companies, such as Chrysler Corporation's new
$750 million engine assembly plant. Thyssen, a German steel
producer, bought an existing plant in the city, which the company
is expanding. Although not in the Empowerment Zone, the steel plant
is particularly important to Detroit because its workforce
comprises mostly city residents.

Nearly $200 million in market-rate housing development is planned
for the city of Detroit for 1996. Construction will begin this year
on a subdivision in the Empowerment Zone that will include 562
condominium units priced between $89,000 and $115,000. This
development, Woodward Place at Brush Park, is the first sales
housing development in more than 60 years in the lower Woodward
Corridor, a deteriorated neighborhood of large Victorian-style
houses located just north of downtown. The developer hopes to match
the strong market response to Victoria Park, a development on
Detroit's lower southeast side that sold 156 single-family homes in
the past year at prices ranging from $100,000 to $250,000.

From 1990 through 1995, an average of 12,000 single-family units
was authorized annually in the Detroit metropolitan area, well
above the average of 8,100 during the 1980s. Especially active
areas are suburban Farmington Hills and Novi in Oakland County, and
Clinton and Shelby Townships in Macomb County. Last year 14,465
single-family units were authorized, the highest level since the
late 1970s. Homebuilding continued at a strong pace in early 1996,
with January and February permits up 13 percent from the same
period last year. Reflecting the strength of the sales market, the
median price of an existing home sold in 1995 was $98,200, up 12
percent from the median price of $87,000 in 1994. In the city of
Detroit, sales of existing homes in 1995 were up 15 percent from
the previous year. 

In 1995 FHA insured 9,321 homes in the Detroit area, which
represents about one-fifth of the 45,000 homes sold in the
metropolitan area during the year.

The rental vacancy rate in the Detroit area was 9 percent in 1995,
a slight improvement over 1994. The suburban market is balanced,
with a vacancy rate in the 4- to- 6-percent range, while the
vacancy rate in the city is between 13 and 15 percent. In 1995
permits were issued for 3,600 multifamily units in the metropolitan
area, slightly above the average of 3,400 units annually since
1990. Some suburbs have particularly strong rental markets. In
Auburn Hills, near Chrysler Corporation's new headquarters, one
developer of a 216-unit project boosted rents $45 to $50 a month
following the first month of leasing activity. Another suburban
developer reported strong preleasing volume of high-rent units in
the Lake Orion area and plans to develop several more projects.

------------------------------

SOUTHWEST

Nonagricultural wage and salary jobs in the Southwest increased by
410,200 during the 12 months ending February 1996, a 3.3-percent
increase over the previous 12 months. All employment sectors except
mining showed increases, with trade and services accounting for
more than 70 percent of the new jobs. Following recent trends New
Mexico had the highest percentage growth, at 4.6 percent.
Employment growth rates for the other States of the region remain
healthy, with Texas at 3.4 percent, Arkansas and Louisiana at 2.9
percent, and Oklahoma at 2.7 percent.

After posting a 7- to 8-percent gain in 1995 over 1994, for both
single-family and multifamily units, single-family building permit
activity in the region in the first quarter of 1996 was stronger
than multifamily permit volume. Multifamily permits were down one-
third during the first quarter, with declines in all States but
Oklahoma.

The volume of home sales in Houston hit record highs for the third
month in a row. The Houston Association of Realtors reported 3,126
sales in March, an increase of nearly 12 percent over March 1995.
Year-to-date sales for the Fort Worth-Arlington area totalled 1,650
for the first 2 months of 1996, up 15 percent over the first 2
months of 1995.

Apartment occupancy in the Dallas-Fort Worth area averaged more
than 93 percent for the first quarter of 1996, up slightly over the
first quarter of 1995. Rents rose by 3.7 percent over the same
period in 1995 reflecting demand generated by the strong rate of
job growth. The Austin area ended 1995 with an apartment occupancy
rate near 97 percent, despite the authorization of almost 4,200
units of multifamily housing permits in 1994 and more than 5,200
units in 1995. 

According to local sources, rent concessions have begun to appear
in the Albuquerque, New Mexico, market. At the end of 1995, the
apartment occupancy rate was 92.5 percent, down from 96.9 percent
at the end of 1994. As of February 1996, there were almost 1,950
apartment units under construction and 2,425 in the planning
stages. In February 1996 the apartment occupancy rate in San
Antonio was just above 90 percent. There were almost 2,850
multifamily units permitted in 1994, but only about 1,850 units
permitted in 1995.

Apartment occupancy in the Fayetteville-Springdale-Rogers,
Arkansas, metropolitan area averaged 92 percent in March 1996.
There have been more than 7,900 multifamily units permitted in this
area since 1990 compared with 6,700 units during the entire 1980s.
The rental markets in Tulsa and Oklahoma City remain generally in
balance, with both cities experiencing occupancy rates of about 92
percent. Several rental properties are in the planning stages in
Oklahoma City. In Tulsa 6 properties totalling 1,500 units should
be completed in 1996, four of which are low-income tax credit
properties. 

Oklahoma has continued its steady growth statewide, with the
population increasing 4.2 percent from April 1990 to July 1995.
Military activity at Fort Sill contributed to growth in the
southwest quadrant of the State. An influx of retirees has been the
main reason for a population increase in the State's northeast
quadrant. There is concern that rapidly increasing development
costs will restrict the construction of affordable housing. The
Urban Land Institute reported in a recent survey that the cost of
a standard 10,000-square-foot lot in Oklahoma City sold for $25,000
in 1995, up 67 percent from 1990.

To fill the gap in the supply of affordable rental housing in the
Southwest, developers are crafting innovative partnerships to build
and preserve housing. In Laredo, Texas, Azteca Economic Development
and Preservation Corporation is building a 50-unit affordable
apartment complex using funding obtained from the AFL-CIO Housing
Investment Trust, HUD, and State and local organizations. Through
a partnership involving HUD, the city of Dallas, NationsBank, and
the Texas Housing Finance Agency, a 492-unit property has been
rehabilitated, and an alliance of community social service agencies
is providing educational, child care, and other services to
residents.

Spotlight on
Shreveport, Louisiana 

The population of the 3-parish Shreveport-Bossier City metropolitan
area was about 380,000 in July 1995. Bossier City, with a current
population of 56,000, is the fastest growing city in Louisiana.
Shreveport, with 202,000 residents, is the largest city in the
metropolitan area. 

Bossier City is the home of Barksdale Air Force Base, the largest
employer, with 8,500 military and civilian employees. Other major
employers include the State government and the Caddo Parish School
Board, with 7,140 and 6,240 employees, respectively. The largest
manufacturer is General Motors, with 3,700 employees.

Shreveport's nonagricultural workforce peaked in 1985 and then
began a precipitous decline that lasted through the late 1980s.
Most of the employment drop was attributed to layoffs at the AT&T
plant and in the oil and gas industry. Riverboat gambling has
spurred an economic recovery in recent years that resulted in
nonagricultural employment growth of 4,600 in 1995, a 2.9-percent
increase over the 1994 average. While the new Governor has proposed
a statewide or local referendum on the gambling issue, a majority
of the people in the Shreveport-Bossier City area favor continued
legal gambling. 

The Red River Waterway project, which will open the
Shreveport-Bossier Port to barge traffic, should further economic
expansion. Bioenergy Development has announced plans for a $415
million methanol plant at the port that will employ 400 workers.
James River Corporation is expanding one of its plants to produce
methanol, which will add 155 jobs. 

Willis-Knighton Medical Center will open a $45 million medical
complex in Bossier this year that will employ 400 to 600 persons.
Several hotels as well as other retail and commercial projects are
under construction in Shreveport and Bossier City. 

During 1995 building permits were issued in the metropolitan area
for 880 single-family homes and 300 multifamily units. Twice as
many multifamily units were permitted over the previous year. Sales
of existing homes totalled 3,296 units in 1995, a decrease of 5.3
percent from 1994. Home sales during the first quarter of 1996
exceeded the number sold in the first quarter of 1995 by 15
percent. 

After 7 years of very limited apartment development, multifamily
construction has increased significantly since 1994. Two low-income
housing tax credit projects, with a total of 118 units, were opened
in early 1995 in Bossier City. The apartment occupancy rate was at
93 percent in early 1996. The rental market bears watching,
however, to see how the supply of units now under construction --
the first significant number to be built in some years -- is
absorbed. 

------------------------------

GREAT PLAINS

Nonagricultural wage and salary employment in the Great Plains
region increased by 135,000 jobs from February 1995 to February
1996. Kansas, with a 3.1-percent growth, led the region, followed
by Missouri, at 2.4 percent, and Iowa and Nebraska, each at 2.3
percent. 

Employment in Kansas continued to be boosted in 1995 by the rapid
economic expansion in Johnson County, a suburban county in the
Kansas City metropolitan area. Johnson County had a record $1.05
billion in construction contracts. Retail store construction more
than tripled to 2.6 million square feet from 761,000 square feet in
1994. Warehouse and apartment construction also increased
significantly. 

The prospects of Interstate Highway 35 becoming a North American
Free Trade Agreement (NAFTA) superhighway continue to improve. In
November 1995 President Clinton signed the National Highway System
Designation Act, identifying it as one of the roadways for the
allocation of money from a Federal funding pool of $155 billion. In
addition, the U.S. Department of the Treasury signed a Memorandum
of Understanding with a broad coalition of business interests to
support the creation of an international trade services center in
Kansas City. This agreement would move some of the Mexican
border-crossing inspections to Kansas City, alleviating border
bottlenecks at Laredo, Texas. 

The creation of a trade center would make Kansas City a collecting
point for Mexican trade and increase its attractiveness as a value-
added production center. There is current optimism among some
Kansas City firms that exports to Mexico will begin to recover and
may achieve pre-1994 peso crisis levels. As a result of the peso
crisis, Kansas exports dropped by 30 percent from $192 million in
1994 to $133 million in 1995. 

Recent estimates from the Census Bureau indicate that the
population in the Great Plains region grew at an annual rate of 0.7
percent from 1990 to July 1995, more than three times the 1980s'
growth rate. Iowa had the lowest population growth rate in the
region, at 0.4 percent. The 1995 population estimate of 2,841,000
for Iowa is still 72,800 persons fewer than in 1980. However,
growth during the 1990s reversed the losses of the 1980s caused by
the downturn in agriculture. Kansas City has reversed its long-term
population loss, adding more than 9,000 persons since 1990.

Building permits for new residential construction in the Great
Plains region totalled 53,192 units in 1995, down about 9 percent
from 1994's total. Single-family building permits, at 39,000 units,
were off almost 12 percent from 1994, with all 4 States showing
declines.

Existing home sales in 1995 declined 3.6 percent for the region,
with all four States recording reduced sales. While sales were off,
1995 was still a strong year, ranking third in the number of sales
during the past decade. 

Multifamily building permit activity in 1995 totalled 14,179 units,
down 8 percent from 1994, but still the second-largest volume since
1988. Iowa accounted for the largest decline, falling from 4,746
units in 1994 to 3,340 in 1995, due mainly to reduced apartment
construction in the Des Moines area. In the first 6 years of the
decade, multifamily permits in the Des Moines area totalled 5,767
units, reaching a high of 1,606 in 1994. With multifamily building
activity running somewhat on the high side, the rental vacancy rate
in Des Moines increased from 3.1 percent in December 1993 to 5.7
percent in December 1995. 

Spotlight on
Springfield, Missouri 

Springfield is a rapidly growing metropolitan area located on the
edge of the Ozark Mountains in southwest Missouri. The current
population of the area is about 300,000 persons and is increasing
by about 2 percent a year. Recreational activities associated with
the mountains, lakes, rivers, and streams have made the Springfield
area attractive as a place to live and conduct business. A
diversified economic base is led by manufacturing, health care,
higher education, and services.

Wage and salary employment in the 3-county metropolitan area
increased by a total of 29,500 jobs from 1990 through 1995, or 24.4
percent. Growth was led by services and retail trade, although all
employment categories grew during the period. The number of
unemployed persons dropped by 1,600 to 5,600 during the same
period, and the rate fell from 5.6 percent to 3.4 percent. 

The rapid growth of employment has resulted largely from expansion
of local businesses. Bass Pro Shops, a company serving the fishing
and recreation activities of the surrounding areas, has grown to
employ 3,500 people. Its retail outlet, covering several city
blocks and including an indoor fishing pond, draws more visitors
than any other attraction in the State of Missouri. O'Reilly
Automotive, another fast-growing local company, operates a regional
automotive parts business with 1,000 employees. MCI, which is
expanding its operations and moving to a new building, will
increase employment from 1,200 to 1,500 workers. 

Springfield serves as a regional health-care center with numerous
clinics and nearly 2,300 beds in 5 hospitals. The industry employs
17,500 people and has been adding about 500 jobs annually. Higher
education also is a major factor in the economic base, with 12
institutions providing education to nearly 27,000 students at the
post-high school level. New firms are continually being attracted
to the area. First Card, a credit-card processing firm, recently
announced plans to construct a facility that will open in June 1997
and employ 1,500 people. 

Residential construction activity rose steadily through the 1990s
to a peak of 3,000 units in 1994, then declined sharply to 1,750
units in 1995. This drop reflected mainly the cutback in
multifamily units from 1,350 units in 1994 to 450 units in 1995.
Single-family housing production jumped by 70 percent from 1990 to
an average of 1,650 units in 1993 and 1994. The volume fell to
about 1,300 units in 1995, but permits increased as the year
progressed, making the fourth-quarter total greater than the
comparable quarter of 1994. 

Multifamily authorizations averaged 420 units a year from 1990 to
1993. The unsustainable surge to 1,350 units in 1994 caused the
market to soften and the vacancy rate to climb to double-digit
levels. The drop in the number of units permitted in 1995 and in
the first 3 months of 1996 will help restore stability, but it
probably will take another 18 months for the current rental vacancy
rate of 13 percent to fall enough to reflect a balanced market. 

New home activity is extending south and east from the Springfield
city limits. Development in Greene County increased from two-thirds
of the county total to nearly three-quarters over the past 5 years.
Home sales for the metropolitan area grew by two-thirds from 1990
to 1993 and have been fairly stable since then. Median sales prices
have increased significantly, with gains of 7.2 percent in 1994 and
7.3 percent in 1995, only slightly below the peak of 8.4 percent in
1993. In addition to these indicators of market strength, the
number of days required to sell a house was down by 25 percent in
1995, and selling prices as a percent of asking prices were up 3
percent from 1990.

------------------------------

ROCKY MOUNTAIN

Annual employment gains categorize Rocky Mountain States into two
groups. Montana, North Dakota, and Wyoming posted increases of 2
percent or less, while gains in the remaining States were
considerably stronger. Growth rates in Utah (5.2 percent) and
Colorado (4.4 percent) are among the highest in the Nation. Both of
these States had double-digit growth rates in construction
employment, making it the fastest-growing sector of the regional
economy.

Utah, however, will lose the anticipated boost from a $2 billion
Micron plant located just south of the Salt Lake City area. Micron
recently halted construction on the plant because of lower
computer-chip prices. The partially completed facility at its peak
employed nearly 5,000 construction workers. Helping to offset this
loss will be several large office buildings and hotels under
construction or slated for construction this year, and
infrastructure improvements to prepare for the Winter Olympics in
2002.

A considerable increase in mountain snowfall in the first quarter
helped increase skier visits after a slow start. Many ski areas are
also in the midst of ambitious expansions that have helped fuel
growth in the construction sector. In contrast the drought on the
plains has clouded the outlook for the winter wheat harvest. If a
poor harvest materializes, particularly now that grain reserves are
at extremely low levels, prices may repeat or exceed the dramatic
increase of last year. 

The region continues to deal effectively with defense contractor
and military cutbacks. These employment reductions have weakened
the outlook for local markets but have not dramatically slowed the
regionwide economy. Business services and nonbank financial firms
are a source of strength in most of the region. Credit-card
transaction processing continues to expand in South Dakota, while
the relocation of customer service operations for a major brokerage
firm to the southern suburbs of Denver is proceeding faster than
originally planned.

Migration to the region has slowed from its peak levels of 1993 and
1994, but remains particularly high in Colorado and Utah. Although
Montana has posted ordinary employment gains, migration continues
at a relatively high level, especially to the western part of the
State.

Residential construction, which declined early last year, picked up
late in the year, ending with about the same annual activity as in
1994. The pace continued to grow in the first quarter of 1996,
reflecting increased building in Colorado. Residential building
during the first 3 months of 1996 was up 20 percent from 1 year
ago. Single-family activity is up 18 percent, while apartment
construction is one-third ahead of last year's pace. Some
submarkets face an oversupply of luxury apartments and rent
concessions are becoming more common in these areas. Nevertheless,
absorption of new units has generally been strong and markets
remain balanced.

Denver's existing home sales in the first quarter of the year
reversed the slowdown that began in the Fall of 1994 and continued
throughout 1995. The seasonal surge in single-family home sales in
March was particularly strong, although condominium sales were also
well ahead of last year's pace. Listings continue to increase
despite the moderately strong sales activity. The average sales
price in the first quarter of 1996 was up 7 percent from the first
quarter of last year, equal to the annual gain at the end of the
year, but down from the double-digit increases typical in early
1995. Foreclosure rates dropped in the region in the fourth quarter
of 1995. Delinquency rate increases in Montana and Wyoming,
however, may portend an increase in foreclosures later in the year.


Spotlight on
Fort Collins-Loveland, Colorado

The Fort Collins-Loveland economy remains strong. Major sources of
employment include Colorado State University, high-technology
manufacturing, and agricultural research. The area is a regional
retail and service center for northern Colorado and southern
Wyoming. Job growth has been consistently positive, although it
slowed in the late 1980s when much of Colorado was in a recession.
However, a strong rebound in the early 1990s pushed local growth
rates above statewide averages. In 1994 employment grew by nearly
6 percent, led by a 22-percent gain in construction. Preliminary
data for 1995 show that gains in construction and services have
slowed but that total employment growth for the year will likely
approach a very healthy 5 percent.

Jobs at small high-technology firms continue to increase as small
companies come into the area from California. The Fort Collins-
Loveland area is very attractive to technically oriented companies
because of its relatively modest wages and a well-educated labor
supply. There is still considerable underemployment in this market,
although jobs paying less than $5 or $6 per hour are becoming more
difficult to fill. Many graduates of Colorado State University are
willing to accept lower paying jobs to remain in Fort Collins.
Because the unemployment rate has remained less than 4 percent for
the past 2 years, wages at the bottom end of the pay scale are
being bid up.

Population migration, though limited during the late 1980s,
remained positive, even while Colorado suffered out-migration. More
recently, the sustained employment growth in the 1990s has pushed
in-migration to its highest level in the past 10 years. More than
three-fourths of the total population increase in 1994 was due to
in-migration. 

Residential building activity peaked at almost 3,200 units in 1994,
surpassing levels during the 1983 to 1984 boom. A 13-percent drop
in single-family permits brought total activity back down to about
2,800 units in 1995. Multifamily permits averaged 640 units
annually in 1994 and 1995, considerably above the average of 250
units a year from 1990 through 1993. 

The rental market remains tight even after the recent surge in
apartment completions. The renter vacancy rate in the first quarter
of 1996 was 3.3 percent, up slightly from 2.7 percent last Fall.
Most major projects have maintained occupancy rates in the high 90-
percent range, and leasing has proceeded well at the major new
projects. The first large project completed in early 1995 was a
HUD-insured development that leased up after facing some initial
resistance to its rents. Two projects now in initial rent-up are
leasing without rent concessions. The number of units under
construction has dropped from its peak of almost 500 units last
summer. It now appears that the market will not soften
significantly even if job growth slows as expected.

Several low-income tax credit projects have been completed or are
in processing in the area. Most units in these projects are
targeted to persons earning 50 to 60 percent of the median income,
and most units are renting at the maximum rents allowed. More than
200 tax credit units have been absorbed during the past year and
another 250 units will be under construction by this summer. This
increased supply will make this segment of the rental market more
competitive in 1997.

Home sales activity slowed in 1993 and 1994. The average existing
home price of $143,000 in 1995 was up only 4 percent, following an
18-percent surge the year before. The level of home listings
dropped last Fall, but remained well above the seller's market
levels of 1992 and 1993. Condominium sales activity surged in the
second half of the year, with the average sales price now more than
$100,000. The most popular new home subdivisions posted average
sales prices in the $160,000 to $180,000 range. 

------------------------------

PACIFIC

California nonfarm employment expanded by more than 300,000 jobs in
the first quarter of 1996 over the first quarter of 1995, a gain of
about 2.8 percent. More than half the increase was in services and
about one-fourth was in trade. Modest increases also were recorded
in durable goods and construction. High-technology manufacturing
concerns in the State, mainly in the San Jose (Silicon Valley) area
and much of southern California, are benefitting from the growth of
international markets, mostly in Asia. 

Arizona's wage and salary employment was up 3.9 percent, or nearly
70,000 jobs, for the first 2 months of 1996 compared with the first
2 months of 1995. Services, education, retail trade, construction,
and high-technology manufacturing accounted for the lion's share of
job growth. More than three-fourths of the increase was in the
Phoenix-Mesa area, which recorded a 4.5-percent job increase in
January and February over the same period last year.
Nonmetropolitan areas, such as Flagstaff and Prescott, continue to
attract light industry and new residents. Tucson lagged with a 1.5-
percent growth, enduring the effects of economic problems in
Mexico. 

With the ongoing recovery of California's economy encouraging
tourism and a wave of casino-hotel projects under way, Nevada's
gaming industry is accelerating this year even after leading the
Nation with a nearly 7-percent job gain in 1995. The January-
February employment average for the State added 63,000 jobs over a
year earlier, more than three-fourths of those in the Las Vegas
area. Service employment in Hawaii got a first-quarter boost from
the reopening of a large Honolulu hotel, but continued reductions
in State and local government and construction have left first-
quarter employment about 1 percent below last year's figure. 

Improved local economies and favorable interest rates pushed up
single-family construction levels in the Pacific region by about 20
percent in the first 3 months of 1996 over the year-earlier period.
Arizona and Nevada are showing strength in home construction, with
gains of about 25 percent through March. Single-family permits in
Phoenix ranked second in the Nation last year, while Las Vegas
ranked fifth. California posted a modest 10-percent increase over
last year's levels for the first 2 months of the year. 

California's existing home sales jumped almost one-fourth in
February from the same month a year ago. Statewide, the median
sales price continued its gradual decline to $171,000, but median
prices increased in the San Francisco Bay area and in the Orange,
San Diego, and Ventura metropolitan areas. Existing home sales in
Phoenix in the first 2 months of the year were up 17 percent over
last year, with the median price holding steady at $89,000.
Improvement in Las Vegas' move-up market contributed to a 17-
percent increase in the median price to about $118,000 in the past
12 months. Existing home sales in economically stagnant Honolulu
fell about 9 percent in the first quarter, reflecting a weak
condominium market. 

Multifamily housing production increased one-third during the first
quarter of 1996 compared with the same period last year.
Multifamily units permitted in that period increased by 33 percent
in Arizona and more than doubled in Nevada to 4,700 and 3,600,
respectively. Strong rental demand in Phoenix and Las Vegas
continues to absorb the higher production levels and has maintained
their balanced markets. Tucson has gone from a balanced 5-percent
vacancy rate a year ago to a rate of more than 8 percent currently,
as the pipeline of high-rent projects faces slowing demand. 

California multifamily housing permits increased almost 30 percent
in the first 3 months of 1996 over last year, although production
remains historically low. Out-migration during the recession and a
decreasing number of renters have contributed to lower production.
Job growth is only recently tightening the market enough to create
an interest in building new projects. The San Francisco Bay area is
still in balance, with a 4- to 6-percent rental vacancy rate. San
Francisco and Santa Clara County are attracting the most interest
in new construction. In Sacramento the rental vacancy rate has
fallen from 8 percent to less than 6.5 percent. 

After 5 years of declining rents and occupancy rates, the Los
Angeles County rental housing vacancy rate remains in the 8- to 10-
percent range, although improvement has been noted in the Hollywood
and mid-Wilshire areas. The hardest-hit area in the county remains
the aerospace-dependent Lancaster-Palmdale submarket, which has a
rental vacancy rate approaching 20 percent. Riverside and San
Bernardino Counties have rental vacancy rates of 13 to 14 percent,
although there is some hope of improvement stemming from population
growth and several years of declining new construction. Orange and
San Diego Counties are balanced, with rental rates around 6
percent. Rents have been rising in these areas recently at a 5-
percent rate, after a long period of rent concessions.

Spotlight on
Orange County, California 

The Orange County metropolitan area extends along 42 miles of the
southern California coast between Los Angeles and San Diego
Counties. The population of Orange County was 2.6 million in
January 1995, almost 10 percent more than the 1990 census count,
according to the California Department of Finance. The largest
cities are Santa Ana, the county seat, with 311,000 residents, and
Anaheim, with 296,000 residents. Fast-growing cities include Tustin
and Mission Viejo, which grew by 4.5 percent and 4.2 percent,
respectively, from January 1994 to January 1995.

Orange County has extensive transportation facilities and is
adjacent to the Port of Long Beach. The freeway system connects the
county to employment centers in Los Angeles County. The John Wayne
Airport and the Port of Long Beach contribute to making Orange
County a leader in trade with Pacific Rim nations.

The key economic sectors are aerospace, electronics, amusement and
recreation, and business services related to engineering and
design. Leading employers include Rockwell International, McDonnell
Douglas, Hughes Aircraft, Beckman Instruments, Disneyland, Knott's
Berry Farm, and Fluor Corporation. The University of California at
Irvine is also a major county resource. Several large university
and private hospitals provide a growing specialization in
biotechnology and biomedical products. Other major industries
include high-technology and computer companies, the Federal
Government, and resort hotels. As a result of the county's
employment concentration, fewer than one-fifth of its resident
workers commute outside the county, and many commute daily from
Riverside and San Bernardino Counties. 

The county suffered from cutbacks in commercial and defense
aerospace and engineering services in the early 1990s. These losses
are leveling off, however, and total nonagricultural employment
increased by 22,700 jobs in the February 1995 to February 1996
period, a 2-percent growth rate. The unemployment rate was
estimated at 4.6 percent during February 1996, down from
approximately 5.1 percent in February 1995, and well below the
State level. The services sector provided 15,100 new jobs,
reflecting strength in business services and the amusement sector.
Tourism has been quite strong, due in part to a popular new
attraction opened last year at Disneyland. Finance, insurance, and
real estate dropped by 2,000 jobs, as financial institutions
continued to reduce employment levels. Local government employment
lost 1,000 jobs. 

Orange County is one of the most affluent counties in the Nation,
with a current median family income of $61,300. The county has one
of the highest-priced housing markets in California. The median
price for an existing home in February 1996 was $212,200, an
increase of 5.3 percent from the same time last year. Sales of new
and used homes in February registered a 31-percent increase over
February 1995, as more affordable mortgage rates brought more
buyers into the market. 

Total residential building permits in Orange County have been
subsiding, averaging 8,800 units a year during the 1980s and 3,650
units annually in the 1990-1995 period. Residential construction
permits were up 9 percent in the first 2 months of this year
compared with 1995. Single-family permits were up by 25 percent, as
mild weather, combined with improved local economic conditions,
helped increase homebuying interest. Multifamily permits during
this period fell by 11 percent.

Rental housing market conditions in Orange County are improving,
according to the latest survey conducted by the local apartment
association. As of the Fall of 1995, the rental vacancy rate in
Orange County had fallen below 6 percent. Rents are reportedly
expected to rise about 5 percent this year. The Irvine Company,
which controls a large share of the multifamily housing stock in
the south county submarket, is currently raising rents by this
amount.

------------------------------

NORTHWEST

The Northwest regional economy grew moderately during the first
quarter of 1996. Nonagricultural employment increased by 85,900
jobs (1.9 percent) over the first quarter of 1995, a positive sign
that the region's economy has reversed the declining growth pattern
of the previous three quarters. Economic expansion is expected to
gain more momentum during the remainder of this year. The aerospace
industry, which has been a drag on the Northwest economy for nearly
5 years, is poised for a comeback. 

Employment was up in each of the four States in the region. The
Oregon economy continued on the upswing, posting a 4.2-percent
increase over the first quarter of 1995. Idaho remained relatively
strong, with a 1.9-percent expansion rate. In contrast, employment
growth was more modest in Washington (0.7 percent) and Alaska (0.5
percent). 

The Western Blue Chip Economic Forecast listed Washington as the
most improved State economy, based on mid-year 1995 employment
data. While trade and service industries were the primary job
producers, Washington also began to reap the benefits from a new
sales tax exemption available to manufacturing companies that
invest in plants and equipment. Intel's selection of Dupont,
Washington, a small town between Tacoma and Olympia, for a major
manufacturing, research, and development facility, is a direct
result of this incentive. This plant will have an employment level
of 6,000 jobs when it is completed in about 5 years. Boeing also
released an optimistic forecast this quarter, estimating that there
will be a demand for 15,900 new jetliners worth $1 trillion during
the next 20 years. The Puget Sound economy will be considerably
stronger during the last half of this decade given the Boeing
rebound and continued growth in high-technology industries.
Moreover, Microsoft will have spent $1 billion on research and
development during their fiscal year ending in mid-1996 and will
spend another $1.5 billion by mid-1997.

The population throughout the Northwest is growing faster than the
national average. Between April 1990 and July 1995, the population
increased 15.5 percent in Idaho, 11.6 percent in Washington, 10.5
percent in Oregon, and 9.7 percent in Alaska. Idaho ranked number
one in the Nation on a percentage growth basis. Washington ranked
number 6; Oregon, number 9; and Alaska, number 11. The U.S.
Department of Commerce's Bureau of Economic Analysis projects
continued higher than average population growth for all States in
the Northwest through the year 2005. 

There were 18,200 single-family units authorized by building
permits during the first 3 months of 1996. This figure represented
a 20-percent increase compared with the first 3 months of 1995. All
States except for Alaska reported increased single-family building
activity compared to the same period a year ago. Oregon led the
area with a 29-percent increase. Multifamily housing building
activity was up nearly 25 percent in the region, reflecting a 54-
percent increase in Oregon. In contrast, activity dropped 30
percent in Idaho.

First-quarter 1996 gains in home sales were impressive in Portland
(18 percent) and Spokane (12 percent). However, sales were down 27
percent in Anchorage and 30 percent in Fairbanks. There was a sharp
decline in FHA activity last year in this region; approximately
27,500 homes were approved for FHA mortgage insurance compared with
50,700 in 1994. Despite declining sales activity for the region as
a whole, home prices throughout the Northwest rose significantly
during 1995. Portland led the region with a 12-percent increase in
the median sales price, while Seattle's median sales price rose 4
percent.

Except in Seattle and Yakima, rental market conditions throughout
Washington grew softer, with rental vacancy rates in the 7- to 8-
percent range. The declining employment base in the Tri-Cities area
was the primary reason for the 12-percent rental vacancy rate in
that market. Seattle's rental market remains balanced overall.
Rental market conditions showed improvement in Boise, where the
rental vacancy rate fell from 9 percent to 7 percent during the
first quarter of 1996. In Oregon rental markets remained tight,
with a vacancy rate of less than 4 percent in Portland.

Spotlight on
Anchorage, Alaska 

The Anchorage metropolitan area has grown as the central hub for
trade, transportation, medical services, tourism, education, and
financial services in Alaska. The economy began to grow rapidly
when the North Slope oil fields were discovered and opened for
development in the 1970s. This period was an economic boom time,
and the demand for housing, office and retail space, and
infrastructure was at an all-time high. When the price of oil and
oil deliveries declined in the 1980s, the bottom dropped out of
Alaska's economy. 

Recovery began in the 1990s, and since 1989 nonfarm employment
growth has averaged between 3 and 4 percent annually. The services
sector has been the largest contributor to growth and now accounts
for 27 percent of nonfarm employment. An increasing population and
expanding tourism industry have driven the growth of services
employment. 

There are two military bases in Anchorage, Elmendorf Air Force Base
(AFB) and Fort Richardson. As of 1994 Elmendorf AFB had a total
population (military and dependents) of 17,780 and 1,000 civilian
employees. After losing 2,000 military personnel as the result of
a major downsizing in 1994, Fort Richardson now has a military
population of 6,500 and civilian employment of 1,000. Employment at
the two installations is expected to remain fairly stable in the
coming year.

Reflecting the improved economy, the Anchorage sales housing market
gained strength in the 1990s, and sales prices have increased at a
pace close to overall inflation. In the first quarter of 1996,
almost 500 homes were sold through the Anchorage Multiple Listing
Service at an average sales price of $150,000.

The Anchorage rental market has followed the local economic cycle.
In the mid-1980s the rental vacancy rate was more than 20 percent.
Few new units have come on the market since then because rents have
not recovered to a level that would support development. 

The Anchorage area is expected to grow slowly during the next
several years. Population forecasts by the University of Alaska
project a 1.1-percent annual population growth through the year
2000. Nonagricultural wage and salary employment is projected to
grow by less than 1 percent during the next year, according to
economic studies by the Alaska Department of Labor and the Alaska
Economic Development Council. During the next few years, the
Anchorage economy will continue to shift away from its dependence
on government, the military, and the oil industry, and will focus
on the tourism, retail trade, and services sectors, which will be
the main sources of new jobs.

-----------------------------

1995 ANNUAL INDEX

The 1995 Annual Index contains entries for the National Data,
Regional Activity*, Historical Data and Appendix+ sections
published in U.S. Housing Market Conditions for the 1st, 2nd, 3rd,
and 4th Quarters of 1995.

*Regional Activity provides summaries of housing market conditions
and activities including profiles of regions (e.g., Northwest,
Great Plains) and selected housing markets (i.e., spotlight on
selected cities).

+The Appendix includes vacancy rate results from postal surveys;
information on Fair Market Rents (FMRs) for selected market areas
and regional updating factors for FMRs; and a table of program
beneficiaries by State.

Note: Page numbers follow the Quarter.

1st Quarter (1Q) May 1995 issue 
2nd Quarter (2Q) Aug 1995 issue
3rd Quarter (3Q) Nov 1995 issue
4th Quarter (4Q) Mar 1996 issue 

Alabama 
 Huntsville (4Q)36

Apartment Absorptions (1Q)14; (2Q)14; (3Q)14; (4Q)16 

APPENDIX, Annual (3Q)83-88

Arizona
 Tucson (3Q)44

Arkansas
 Fayetteville-Springdale-Rogers (2Q)39

Builders' Views of Housing Market Activity (1Q)15; (2Q)15; (3Q)16;
(4Q)18

Builders' Views of Housing  Market Activity: 1978-Present (1Q)60;
(2Q)60; (3Q)60; (4Q)61

California
 Fresno (2Q)45
 Riverside-San Bernardino (1Q)45
 San Jose (4Q)45

Colorado
 Colorado Springs (2Q)43
 Denver (3Q)42
 Grand Junction (4Q)43 

Completions, Housing (1Q)11; (2Q)11; (3Q)11; (4Q)13

Connecticut
 Danbury (4Q)30
 New London-Norwich (2Q)28

Decentralization of American Cities (4Q)3-9 
 Decentralization patterns (4Q)7
 "Edge Cities" (4Q)7
 Reasons for structural changes (4Q)7-8
 Redistribution resulting from structural changes (4Q)8
 Regional changes (4Q)4-7

Delaware
 Wilmington (1Q)32

Delinquencies and Foreclosures (1Q)22; (2Q)22; (3Q)22; (4Q)24

Existing Single-Family Home Prices: 1968-Present (1Q)57; (2Q)57;
 (3Q)57; (4Q)58

Existing Single-Family Home Sales: 1968-Present (1Q)55; (2Q)55;
 (3Q)55; (4Q)56 

Expenditures for Existing Residential Properties: 1968-Present
 (1Q)70; (2Q)70; (3Q)70; (4Q)71

FHA 1-4 Family  Mortgage Insurance (1Q)18; (2Q)18; (3Q)18; (4Q)20

FHA Unassisted Multifamily Mortgage Insurance Activity: 1980-
 Present (1Q)64; (2Q)64; (3Q)64; (4Q)65

FHA, VA, and PMI 1-4 Family Mortgage Insurance Activity: 1968-
 Present (1Q)63; (2Q)63; (3Q)63; (4Q)64 
 
Foreclosure alternatives (3Q)3-7
 Break-even probability of loan workouts (3Q)5
 FHA and loss-mitigation/foreclosure-avoidance measures (3Q)6     
 Loss-mitigation policies from private sector (3Q)4-5
 Protecting borrowers and reducing lenders' losses (3Q)3-4        
 Single-Family Mortgage Assignment Program (3Q)6 

Great Plains Region (1Q)39; (2Q)40; (3Q)39; (4Q)41

Gross Domestic Product and Residential Fixed Investment: 1959-
Present (1Q)72; (2Q)72; (3Q)72; (4Q)73

------------------------------ 

HISTORICAL DATA (1Q)49; (2Q)49; (3Q)49; (4Q)49

Home Prices (New and Existing) (1Q)13; (2Q)13; (3Q)13; (4Q)15

Home Sales (New and Existing) (1Q)12; (2Q)12; (3Q)12; (4Q)14

Homeownership Rates (1Q)25; (2Q)25; (3Q)25; (4Q)27

Homeownership Rates by Age of Householder: 1982-Present (1Q)75;
 (2Q)78; (3Q)78; (4Q)79

Homeownership Rates by Household Type: 1983-Present (2Q)81; (3Q)81;
 (4Q)82 

Homeownership Rates by Race and Ethnicity: 1983-Present (2Q)80;
 (3Q)80; (4Q)81

Homeownership Rates by Region and Metropolitan Status: 1983-Present
 (2Q)79; (3Q)79; (4Q)80 

Housing Affordability (1Q)14; (2Q)14; (3Q)14; (4Q)16

Housing Affordability Index: 1970-Present (1Q)58; (2Q)58; (3Q)58;
 (4Q)59 

Housing Finance (1Q)17; (2Q)17; (3Q)17; (4Q)19 

Housing Inventory (1Q)24; (2Q)24; (3Q)24; (4Q)26

Housing Investment (1Q)23; (2Q)23; (3Q)23; (4Q)25 

Housing Marketing (1Q)12; (2Q)12; (3Q)12; (4Q)14 

Housing Production (1Q)9; (2Q)9; (3Q)9; (4Q)11

Housing Stock (1Q)24; (2Q)24; (3Q)24; (4Q)26 

Illinois
 Chicago (1Q)36

Iowa
 Des Moines (1Q)41

Kansas
 Kansas City (3Q)40
 Wichita (2Q)41

Maine
 See New Hampshire, Portsmouth-Rochester 

Manufactured (Mobile) Home Placements (1Q)15; (2Q)15; (3Q)15;
 (4Q)17 

Manufactured (Mobile) Home Shipments (1Q)11; (2Q)11; (3Q)11; (4Q)13

Manufactured (Mobile) Home Shipments, Residential Placements,
 Average Prices, and Units for Sale: 1974-Present (1Q)53; (2Q)53;
 (3Q)53; (4Q)54

Market Absorption of New Rental Units and Median Asking Rent: 1970-
 Present (1Q)59; (2Q)59; (3Q)59; (4Q)60 

Mid-Atlantic Region (1Q)31; (2Q)31; (3Q)31; (4Q)33

Midwest Region (1Q)35; (2Q)36; (3Q)35; (4Q)37

Minnesota
 Minneapolis-St. Paul (4Q)38

Missouri 
 Kansas City (3Q)40 

Mortgage Delinquencies and Foreclosures Started: 1984-Present
 (1Q)69; (2Q)69; (3Q)69; (4Q)70

Mortgage Interest Rates (1Q)17; (2Q)17; (3Q)17; (4Q)19

Mortgage Interest Rates, Average Commitment Rates, and Points:
 1972-Present (1Q)61; (2Q)61; (3Q)61; (4Q)62 

Mortgage Interest Rates, Points, Effective Rates, and Average Term
 to Maturity on Conventional Loans Closed: 1982-Present (1Q)62;
 (2Q)62; (3Q)62; (4Q)63

Mortgage Originations by Lender Type, 1-4 Family Units (1Q)21;
 (2Q)21; (3Q)21; (4Q)23 

Mortgage Originations by Loan Type, 1-4 Family Units (1Q)19;
 (2Q)19; (3Q)19; (4Q)21

Mortgage Originations, 1-4 Family  Units by Lender Type: 1970-
 Present (1Q)67; (2Q)67; (3Q)67; (4Q)68 

Mortgage Originations, 1-4 Family Units by Loan Type: 1970-Present
 (1Q)65; (2Q)65; (3Q)65; (4Q)66

------------------------------
NATIONAL DATA (1Q)9; (2Q)9; (3Q)9; (4Q)11

Nebraska
 Lincoln (4Q)42

Net Acquisitions, 1-4 Family Units by Lender Type: 1970-Present
 (1Q)68; (2Q)68; (3Q)68; (4Q)69

Net Change in Number of Households by Age of Householder: 1971-
 Present (2Q)73; (3Q)73; (4Q)74

Net Change in Number of Households by Race and Ethnicity of
 Householder: 1971-Present (2Q)75; (3Q)75; (4Q)76 

Net Change in Number of Households by Type of Household: 1971-
 Present (2Q)74; (3Q)74; (4Q)75

New England Region (1Q)28; (2Q)28; (3Q)28; (4Q)30

New Hampshire
 Nashua (3Q)28 
 Portsmouth-Rochester (1Q)28

New Jersey 
 Newark (1Q)30 

New Privately Owned Housing Units Authorized: 1959-Present (1Q)49;
 (2Q)49; (3Q)49; (4Q)49

New Privately Owned Housing Units Completed: 1968-Present (1Q)52;
 (2Q)52; (3Q)52; (4Q)53

New Privately Owned Housing Units Started: 1959-Present (1Q)50;
 (2Q)50; (3Q)50; (4Q)51

New Privately Owned Housing Units Under Construction: 1969-Present
 (1Q)51; (2Q)51; (3Q)51; (4Q)52

New Single-Family Home Prices: 1963-Present (1Q)56; (2Q)56; (3Q)56;
 (4Q)57 

New Single-Family Home Sales: 1963-Present (1Q)54; (2Q)54; (3Q)54;
 (4Q)55

New York 
 Elmira-Corning (4Q)32
 Glens Falls (2Q)30
 Utica-Rome (3Q)30 

New York/New Jersey Region (1Q)29; (2Q)29; (3Q)29; (4Q)31

Northwest Region (1Q)45; (2Q)46; (3Q)45; (4Q)46

Ohio 
 Cleveland (3Q)36 

Oklahoma
 Oklahoma City (4Q)39

Oregon 
 Eugene-Springfield (2Q)47
 Portland (4Q)47

Pacific Region (1Q)44; (2Q)44; (3Q)43; (4Q)44

Pennsylvania
 Philadelphia (4Q)34

Permits, Housing (1Q)9; (2Q)9; (3Q)9; (4Q)11

PMI and VA Activity (1Q)18; (2Q)18; (3Q)18; (4Q)20

Public Housing (1Q)3-6
 Income level of residents (1Q)4-5
 Location of public housing (1Q)4
 1991 American Housing Survey (1Q)3
 Public Housing Race and Location Data File (1Q)3 
 Quality of public housing units (1Q)5
 Residents of public housing (1Q)4
 Types of structures (1Q)4

Puerto Rico
 San Juan-Bayamon (3Q)34

------------------------------

REGIONAL ACTIVITY (1Q)27; (2Q)27; (3Q)27; (4Q)29

Rental Vacancy Rates: 1979-Present (1Q)74; (2Q)77; (3Q)77; (4Q)78

Residential Fixed Investment and Gross Domestic Product (1Q)23;
 (2Q)23; (3Q)23; (4Q)25

Residential Mortgage Originations by Building Type (1Q)20; (2Q)20;
 (3Q)20; (4Q)22

Residential Mortgage Originations by Building Type: 1970-Present
 (1Q)66; (2Q)66; (3Q)66; (4Q)67

Rocky Mountain Region (1Q)41; (2Q)42; (3Q)41; (4Q)42 

South Carolina
 Greenville-Spartanburg (1Q)34

South Dakota
 Rapid City (1Q)42

Southeast Region (1Q)33; (2Q)33; (3Q)32; (4Q)35

Southwest Region (1Q)37; (2Q)38; (3Q)37; (4Q)39

Starts, Housing (1Q)10; (2Q)10; (3Q)10; (4Q)12

Tennessee
 Knoxville (2Q)35

Texas
 Dallas (1Q)39
 Fort Worth-Arlington (3Q)38

Under Construction, Housing (1Q)10; (2Q)10; (3Q)10; (4Q)12

U.S. Housing Stock, Total: 1970-Present (1Q)73; (2Q)76; (3Q)76;
 (4Q)77

Vacancy Rates (1Q)25; (2Q)25; (3Q)25; (4Q)27

Value of New Construction Put in Place, Private Residential
 Buildings: 1974-Present (1Q)71; (2Q)71; (3Q)71; (4Q)72

Virginia
 Richmond-Petersburg (2Q)32

Vouchers and Certificates (2Q)3-7
 Housing availability relative to FMR (2Q)4
 Housing options (2Q)5-6
 Participants in Section 8 programs (2Q)5
 Prime settings for tenant-based programs (2Q)4-5
 Project- and tenant-based subsidy programs (2Q)3
 Section 8 certificate and voucher programs (2Q)3-4

Washington
 Bremerton (1Q)47
 Richland-Kenniwick-Pasco (3Q)46
 Vancouver (4Q)47

West Virginia
 Charleston (3Q)32

Wisconsin
 Madison (2Q)37

------------------------------

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1st Quarter 1996 (dated: May 1996)

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