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Builder Confidence Holds Steady in Face of Rising Costs
Monday, May 17, 2021
The National Association of Home Builders (NAHB) said
new home builders are not losing faith in the market for new homes despite
their growing concerns over the price and availability of lumber and other
building materials. The NAHB/Wells Fargo Housing Market Index, a measure of
builder confidence, was at 83 in May, the same level as in April. "Low interest rates are supporting
housing affordability in a market where the cost of most materials is rising,"
said NAHB Chief Economist Robert Dietz. "In recent months, aggregate
residential construction material costs were up 12 percent year-over-year, and
our surveys suggest those costs are rising further. Some builders are slowing
sales to manage their own supply-chains, which means growing affordability
challenges for a market in critical need of more inventory."
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