Builder confidence in the single-family home market 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 and is the first time since July 2022 that levels have moved into positive territory.
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 builder/developer loans has become more difficult over last year which will likely result in lower lot supplies as industry attempts expansion off cycle lows.”
Robert Dietz, NAHB chief economist added: “Shelter cost growth is now a major source of inflation; such costs can only be reduced by building more affordable housing – for sale or rent – multifamily or single-family. Policymakers can help fight inflation by addressing supply chain issues like skilled labor shortage as well as reducing inefficient regulatory policies such as exclusionary zoning.”
