In August, builder sentiment in the market for newly built single-family homes fell five points to 75.
Higher construction costs and supply shortages, along with rising home prices, pushed builder confidence to its lowest reading since July 2020, according to the most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Builder sentiment in the market for newly built single-family homes fell five points to 75 in August.
“Buyer traffic has fallen to its lowest reading since July 2020 as some prospective buyers are experiencing sticker shock due to higher construction costs,” said Chuck Fowke, NAHB chairman and a custom home builder from Tampa, Fla. “Policymakers need to find long-term solutions to supply-chain issues.”