Builder confidence increased one point in April to a level of 83 on the National Association of Home Builders/Wells Fargo Housing Market Index.
NAHB credited the uptick to continuing housing demand, which “appears to be unwavering for now,” according to NAHB Chief Economist Robert Dietz. However, the surging cost of materials, including a 253% increase in the cost of lumber year-over-year, continue to pose a challenge for builders.
"The supply chain for residential construction is tight, particularly regarding the cost and availability of lumber, appliances, and other building materials,” stated NAHB Chairman Chuck Fowke. “Though builders are seeking to keep home prices affordable in a market in need of more inventory, policymakers must find ways to increase the supply of building materials as the economy runs hot in 2021."
Builder confidence levels above 50 are considered positive indicators for the housing market.
