On Monday (9-20-21), The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) reported that builder sentiment in the market for newly built single-family homes edged 1-point higher in September to a reading of 76. This brings the 3-month slide to an end.
Builder confidence topped at a level of 90 last November. Any reading above 50 indicates that more builders view conditions as good rather than poor and that demand remains strong.
The September data show stability as some building material cost challenges ease, particularly for softwood lumber. However, delivery times remain extended, and the chronic construction labor shortage is expected to persist as the overall labor market recovers.
The NAHB also expects housing affordability will be a key demand-side challenge in the coming quarters, given the rapid rate of growth for home prices and construction costs over the last year.
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Builder Confidence Steadies as Material and Labor Challenges Persist