Builder confidence higher than expected with surging demand, despite supply chain disruptions, labor shortage, and lack of space

2021-11-16T19:58:00-05:00

Higher prices and longer wait times do not appear to be turning buyers away from the nation’s homebuilders. With demand still surging, homebuilder confidence in the market for single-family homes rose more than expected in November, to the highest level since last May

According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder sentiment in the market for newly-built single-family homes moved three points higher to 83 in November. Readings above 50 indicate that more builders view conditions as good than poor. Lack of resale inventories combined with strong consumer demand has been attributed to the boost in confidence, despite ongoing supply chain disruptions and labor shortages.

NAHB Chief Economist Robert Diaz said that the construction industry currently has more than 330,000 open positions. Additionally, there is a lack of space, in which lot availability is at “multi-decade lows”. Diaz is calling on policymakers to focus on resolving these issues in order to meet the strong demand.

Housing Market Index goes above 50 for the first time in seven years

2013-06-19T12:43:00-04:00

Builder confidence in the market for newly-built single-family homes hit a significant milestone in June, surging eight points to a reading of 52 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released today. Any reading over 50 indicates that more builders view sales conditions as good than poor.

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Builder confidence higher than expected with surging demand, despite supply chain disruptions, labor shortage, and lack of space

Housing Market Index goes above 50 for the first time in seven years