In today’s construction news, read about the prospect of taxes on imported products and the possibility of labor shortages due to mass deportations of immigrants that could hinder new construction next year, but in November, U.S. single-family homebuilding recovered as the effects of storms subsided. On the other hand, Archer Aviation stated it has finished construction of a new 400,000-square-foot eVTOL manufacturing plant in Georgia and is actively integrating tooling to begin assembling its patented Midnight aircraft in early 2025.

One Barrier to the US Single-family Home Recovery is Tariffs

Original Source: US single-family housing starts rebound; tariffs an obstacle

As hurricanes subsided in November, U.S. single-family homebuilding resumed, but tariffs on imported products and labor shortages from mass deportations might slow new construction next year.

The Commerce Department said on Wednesday that single-family home permits increased slightly last month, suggesting that residential investment will not boost economic growth in the fourth quarter.

Mortgage rates rise Even though the Federal Reserve has been cutting borrowing costs, President-elect Donald Trump’s threatened tariffs and expulsions of undocumented immigrants are hurting the housing market.

U.S. central bank delivered third consecutive rate cut on Wednesday, but forecasted only two borrowing cost reductions next year compared to four in September, citing economic resiliency.

The new Trump administration may also implement inflationary policies.

“We are less upbeat about the outlook, as we expect Donald Trump’s proposed trade and immigration policies to weigh on homebuilders’ supply capacity,” said Capital Economics North America analyst Bradley Saunders.

Single-family housing starts, which make up most homebuilding, rose 6.4% to 1.011 million units in month, according to the Census Bureau.

After a significant shortage of pre-owned homes, homebuilding has suffered this year. After the Fed dropped interest rates in September, the average 30-year fixed-rate mortgage rate remains near 7%, mirroring 10-year U.S. Treasury yields, which have climbed on the economy’s resiliency and concerns about the new administration’s inflationary policies.

The Fed’s policy rate is currently 4.25%-4.50%, down 100 basis points. It rose 5.25 percentage points from March 2022 to July 2023.

“Our Treasury strategists only expect about a 15 basis-point decline in 10-year rates by the end of next year, which suggests limited mortgage rate cuts,” said JPMorgan economist Abiel Reinhart.

“At the same time, the possibility of less net immigration could reduce household growth, while also depressing labor availability in the construction industry.”

Fed rate predictions lowered Wall Street stocks. US dollar rose against basket of currencies. U.S. Treasury yields climbed.

Lumber costs more

Homebuilders’ optimism for fewer regulations from Trump’s Republican administration kept confidence at seven-month highs in December, according to a Tuesday NAHB survey. If Trump implemented his trade and immigration proposals, economists predicted higher lumber costs and severe workforce shortages.

America imports a lot of lumber from Canada, the principal raw material for home construction. Trump plans to levy a 25% tariff on all Canadian and Mexican goods.

This year, President Joe Biden boosted Canadian softwood lumber import taxes to 14.54% from 8.05%.

“Many residential building regulations are imposed at the state and local level,” said Oxford Economics head U.S. economist Nancy Vanden Houten. “Foreign-born workers who are not citizens comprise about 18% of the construction workforce.”

Single-family dwelling ground-breaking returned 18.3% in the densely populated South following Hurricanes Helene and Milton in October.

Single-family home starts fell in the Northeast, Midwest, and West.

Single-family homebuilding declined 10.2% year-over-year.

Multi-family home starts fell 24.1% to 264,000, the lowest level since March. Housing starts fell 1.8% to 1.289 million units.

Reuters economists predicted 1.343 million house starts. Compared to last year, starts fell 14.6%.

In November, single-family housing permits rose 0.1% to 972,000 units. Single-family home permits rose 1.8% in the South. The Northeast and West dropped, but the Midwest remained steady.

Multi-family development permits rose 22.1% to 481,000 units. Total building permits rose 6.1% to 1.505 million. Compared to last year, they fell 0.2%.

Residential investment has slowed GDP for two quarters. Fourth-quarter GDP is expected to rise 3.2% annually, according to the Atlanta Fed. July-September economic growth was 2.8%.

The number of unbuilt dwellings permitted for development rose 6.1% to 295,000 last month.

The single-family homebuilding backlog grew 0.7% to 144,000. That housing segment completed 1.038 million units, up 3.3%.

Overall housing completions declined 1.9% to 1.601 million units. Housing building fell 1.8% to 1.434 million units.

Single-family homes under construction fell 0.8% to 637,000 units, the lowest level since March 2021.

The Us Assembly Plant is Finished by Archer, and eVTOL Production Will Start in Early 2025

Original Source: Archer completes construction of US assembly plant, eVTOL production to begin in early 2025

Archer Aviation has completed construction of a 400,000-square-foot eVTOL manufacturing plant in Georgia and is preparing to build its Midnight aircraft in early 2025. The new factory was developed with Stellantis, and Archer will look to the global OEM to boost US eVTOL production through the decade.

Santa Clara, California-based Archer ($ACHR) develops electric vertical takeoff and landing aircraft for urban air mobility (UAM) networks like air taxis.

We followed the company for years as it partnered with global companies to build and operate sustainable air travel networks utilizing its flagship Midnight eVTOL aircraft. Stellantis, a longtime Archer partner, agreed to manufacture Archer’s eVTOL technology exclusively at a new US facility. More particularly, Covington, Georgia.

At the January 2023 assembly facility announcement, Stellantis said it would provide Archer up to $150 million in equity capital to utilize until 2024 if it met specific commercial targets.

The following June, Archer and Stellantis revealed renderings of the 100-acre Georgia eVTOL facility being built. Archer and Stellantis also planned to swiftly grow US production and commercialize UAM locally using their strengths, eVTOL design and development and high-volume vehicle manufacturing.

Archer announced a $215 million equity investment led by Stellantis and including Boeing, United, and ARK Invest in August 2023. Archer’s Midnight eVTOL has since received a Special Airworthiness Certificate from the FAA, indicating it passes all safety standards for flight tests.

Archer announced today that its new factory is complete and eVTOL production will begin in early 2025. The aviation specialist will again turn to Stellantis to extend its operation after a small initial launch.

Completed Archer eVTOL facility begins production soon.

Archer Aviation announced this morning that their eVTOL aircraft production facility, “ARC,” has been constructed and secured a certificate of occupancy to commence operations near Covington Municipal Airport in Georgia.

Archer says it has started tooling load-in for Midnight eVTOL manufacturing, slated to begin early next year, after a ribbon-cutting ceremony. Archer now has a 400,000-square-foot mansion in Georgia, but its initial eVTOL production objectives will be low to evaluate its processes before scaling.

By 2025, the company wants to produce two airplanes per month. That means 15–24 builds next year. Archer CEO and creator Adam Goldstein discussed the eVTOL production milestone:

This facility’s completion shows the industry’s shift from R&D to commercialization. ARC construction is complete, and our team is preparing for production early next year. From then, execution and scaling matter. I am extremely pleased of the Archer team and our partners for finishing so quickly and on budget. I can’t wait for our plant to start making planes.

Archer thanks Stellantis for helping it get thus far and anticipates that business partnership to develop as scaled Midnight eVTOL production nears completion. Archer said Stellantis will continue to provide finance, innovative manufacturing technology, production skills, and experienced individuals to boost eVTOL production. It aims to handle 650 planes yearly by 2030.

However, Archer and Stellantis are still completing their 2023 agreement to give Stellantis exclusive contract manufacturing rights to construct Midnight eVTOLs. According to prior cooperation announcements, Archer’s Midnight eVTOL has a growing order book for air taxi networks internationally, thus scaling its US manufacturing quickly is best.

Summary of today’s construction news

In simple terms, at 1.601 million units completed, overall housing completions decreased 1.9%. At 1.434 million units, the number of housing units under development fell 1.8%. At 637,000 units, the inventory of single-family housing under construction fell 0.8%, the lowest since March 2021. In November, single-family housing begins to rise 6.4%. The rebound in homebuilding is attributed to the South. Single-family house building permits increase by 0.1%.

On the other hand, the 2023 agreement that would grant Stellantis exclusive contract manufacturing rights to construct the Midnight eVTOLs is still being finalized between Archer and Stellantis. Archer’s Midnight eVTOL has a growing order book for air taxi networks internationally, as per prior collaboration announcements, so the sooner it can expand its US manufacturing, the better. By 2030, the facility is expected to grow to 650 aircraft per year.