The following are facts, figures and information snippets regarding the home building experience and trends in the housing industry.

Sales of New and Existing Homes, 1994 - 2004

Year	New Homes	Existing Homes
1994	670,000	3,917,000
1995	665,000	3,886,000
1996	758,000	4,197,000
1997	805,000	4,382,000
1998	885,000	4,970,000
1999	881,000	5,205,000
2000	877,000	5,152,000
2001	907,000	5,282,000
2002	977,000	5,595,000
2003*	1,072,000	6,030,000
2004*	994,000	5,712,000

*NAHB Forecast

Sources:
New home sales - U.S. Census Bureau.
Existing home sales - National Association of Realtors.

Spending by New Home Buyers in First Year After Purchase

Property alterations	$3,194
Furnishings	$3,632
Appliances	$2,079
Total	$8,905

Source: NAHB

The Effect of Lumber Prices on the Cost of Housing The cost of lumber and wood products accounts for one-third of the cost of materials used to build a home, so increases in lumber costs can have a significant effect on housing affordability. At $400 per 1,000 board feet, the lumber package for a 2,300-square-foot home costs over $11,000; at $600 per 1,000 board feet, the cost is more than $16,000.

Source: NAHB

What 21st Century Home Buyers Want NAHB's consumer survey, "What 21st Century Home Buyers Want," takes a comprehensive look at what's hot and what's not among prospective homebuyers. Following is a summary of the survey results:

Buyers of new homes want larger houses with lots of space. They especially prefer large kitchens adjacent to family rooms and want the two rooms to be visually open or divided with a half wall.
They want upscale features like high ceilings and island work areas in the kitchen.
They are also very interested in exterior features such as a front porch, deck or patio in the rear, and exterior lighting.
Laundry rooms and dining rooms are widely considered to be essential in new homes.
Some of the features that average homebuyers want today used to be considered optional and were standard only in upscale luxury homes. Today, the difference between average homes and upscale/luxury homes is that upscale homes are larger, with top-of-the-line equipment and materials.
The study found that some features of new homes have improved to the point where consumers are generally satisfied. For example, while consumers want large kitchens, most are reluctant to see the kitchen expand further at the expense of other spaces. The number of bathrooms that is typical of homes being built today is sufficient for most homebuyers.
Continuing a trend identified in previous NAHB studies, many home buyers do not think it is necessary to have a separate living room.
The median size of respondents' current homes was 1,770 square feet; they preferred 2,071 square feet for a new home.
The homes that shoppers want are not significantly larger than most of the new homes currently being sold.
When it comes to ceilings, two out of three respondents prefer nine-foot or higher ceilings on the first floor. Almost 40% prefer nine-foot or higher ceilings on the second floor.
Nearly 40% of the respondents said they would like a minimum of four bedrooms; 49% would accept three bedrooms. More than a third of new, single-family homes completed in 2002 had four or more bedrooms, according to the U.S. Commerce Department.
One-fourth of respondents said that they wanted at least a three-car garage, even considering the extra cost. The majority of respondents (54%) would settle for a two-car garage.
Of 18 different kitchen features, a walk-in pantry topped the list, with 78% of respondents rating it as desirable or essential. After a walk-in pantry, respondents most favored island work areas (71%) and light wood cabinets (59%).
A linen closet topped the list of desired bathroom features, with 88% of the respondents categorizing it as essential or desirable. Other desirable features included an exhaust fan (86%) separate shower enclosure (69%), water temperature control (67%), a whirlpool tub (58%) ceramic tile walls (55%) and a dressing room/make-up area (52%).
Regarding extra rooms for convenience and luxury, 92% of respondents wanted a laundry room, 79% wanted a dining room, 58% wanted a home office, 54% wanted a den/library, and 46% wanted a sunroom. Media rooms (28%) and exercise rooms (29%) were not as popular.
The people surveyed were frequently concerned about storage space, with only about one-third rating general storage space as adequate.
Respondents were divided over whether they would prefer a larger home with fewer amenities or a smaller home with high quality.

Mortgage Interest Rates, 1980 - 2003Mortgage interest rates are one of the most important factors affecting housing affordability. Typically, as interest rates decline, fewer people use adjustable rate mortgages.

Year	Fixed ¹	Adjustable ²	ARM Share ³
1980	13.77%	NA	NA
1981	16.64	NA	NA
1982	16.09	NA	41%
1983	13.23	NA	37
1984	13.87	11.52%	61
1985	12.42	10.05	50
1986	10.18	8.42	31
1987	10.20	7.82	43
1988	10.33	7.90	58
1989	10.32	8.81	39
1990	10.13	8.36	28
1991	9.25	7.10	23
1992	8.40	5.63	20
1993	7.33	4.59	20
1994	8.36	5.34	39
1995	7.95	6.07	33
1996	7.81	5.67	27
1997	7.60	5.61	22
1998	6.95	5.58	12
1999	7.43	5.98	22
2000	8.06	7.04	25
2000	6.97	5.83	12
2002	6.54	4.62	17
2003*	5.90	3.80	NA

Freddie Mac survey of major lenders of contract rates on commitments for fixed-rate, 80 percent loan-to-value mortgages. Does not incorporate points.
Effective closing rate for conventional adjustable mortgages, as reported by Freddie Mac.
Share of all home loans closed by all major lenders that are adjustable. (Federal Housing Finance Board)

NA - Not available.
* - NAHB estimate.

Sources: Freddie Mac and Federal Housing Finance Board

Building Greener, Building Better, Conserving Resources

Roof Sheathing and Coverings - In 1978, plywood made up 89.1% of the roof sheathing market; by 1999, use of plywood in roof sheathing had dropped to 27%. Plywood has been replaced by Oriental Strand Board (OSB), which now comprises more than 70% of the market.

Floor Sheathing - Use of plywood has declined, from 90% of the market in 1978 to 26.7% in 1999, largely due to OSB, which made up 34% of the materials market as of 1999.

Insulation - Between 1978 and 1999, the typical level of insulation in walls increased from R-11 to R-13. Typical insulation levels rose from R-19 to R-30 in ceilings/attics.

Exterior Doors - Use of insulated doors increased from 44% in 1978 to 85.2% in 1999. Use of insulates steel doors increased from 38.5% in 1978 to 87% in 1999.

Windows - Between 1978 and 1999, use of low-E coated windows grew by almost 30%; the use of insulated glass increased from nearly 68% o 87%.

Heat pumps and Furnaces - Gas and oil furnaces with greater than 80% efficiency comprised 89% of the market in 1999. Nearly one out of every three air conditioners manufactured in 1999 had a SEER 9Seasonal Energy Efficiency Ratio) rating of 12 or above.

Roof and Floor Framing - The market share for more environmentally friendly floor trusses and I-joists went from 2% in 1978 to 29.2% in 1999, while use of demenstioned lumber for floor framing dropped by more than 20%.

Plastic "Lumber" - The use of plastic "lumber" in decks has grown steadily since 1978, helping reduce use of redwood in decks from 20.1% in 1978 to 6.3% in 1999.

Dishwashers - Typically, dishwashers manufactured in 1997 use 40% less energy than model manufactured in 1972, according to the Whirlpool Corporation.

Refrigerators - in 1972, according to Whirlpool, a typical refrigerator had 18 cubic feet of capacity and used about 2000 kilowatt hours per year; by 1999, the amount of energy needed for a 20 cubic foot refrigerator had been reduced to 600 - 700 kilowatt hours per year.

Toilets - Toilets installed in homes in 1999 used only 1.6 gallons of water per flush, compared to 4 gallons per flush in the 1970s.

Washing Machines - Use of energy by washing machines has declined by roughly 45%.

Source: NAHB