A recent surge in the cost of lumber is to blame for a slip in builder confidence this month, according to the National Association of Home Builders (NAHB).
Confidence levels dropped two points on the NAHB/Wells Fargo Housing Market Index to a level of 68. Levels above 50 on the index still indicate positive conditions for builders, however.
“Builders are optimistic about housing market conditions as consumer demand continues to grow,” NAHB Chairman Randy Noel said in a statement. “However, builders are increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability.”
Lumber prices have added about $9,000 to the cost of a new single-family home since January 2017, Noel added.
NAHB Chief Economist Robert Dietz said he anticipates continued consumer demand for housing in the months ahead.
