Builder confidence is continuing to wane amid ongoing lumber and building material supply side constraints.
According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), this month’s confidence rating fell for the third consecutive month to 79. Rising construction costs also contributed to the drop, which pushed the HMI below the 80-point mark for the first time since last September.
“While builders continue to report solid buyer traffic numbers, helped by historically low existing home inventory and a persistent housing deficit, increasing development and construction costs have taken a toll on builder confidence,” said NAHB Chairman Jerry Konter. “We call upon policymakers to act now to ease supply-chain woes. “Improving access to lumber, OSB and other materials will help builders increase the supply of badly-needed housing and fight inflation.”
Looking at the three-month moving averages for regional HMI scores, the West was the only market that saw an increase, up one point to 90.
The Northeast fell seven points to 69, the Midwest dropped one point to 72 and the South fell three points to 83.