Builder confidence in the market for newly built single-family homes rose five points to 55 in June, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This marks six consecutive months of increasing sentiment levels and is the first time that builder confidence has moved into positive territory since July 2022.
Alicia Huey, NAHB Chairman and custom home builder/developer from Birmingham, AL commented: “Builders are feeling cautiously optimistic about market conditions due to low existing home inventory and gradual improvements for supply chains. However, access for loans has become more difficult over the last year which will likely result in lower lot supplies as we try to expand off cycle lows.”
Robert Dietz, NAHB Chief Economist added: “Shelter cost growth is now a major source of inflation; this can only be addressed by building more attainable housing – both rental and single-family. Policymakers have an important role here by addressing supply chain issues such as skilled labor shortage or inefficient regulatory policies like exclusionary zoning.”
