Builder confidence held steady in May, remaining at a level of 83 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.
The record for builder confidence levels is 90, which was recorded in November 2020.
NAHB credited the continued strong confidence level to a lack of resale inventory, low mortgage interest rates and a growing demographic of prospective home buyers.
However, home prices and material shortages remain an ongoing concern for the industry.
“First-time and first-generation home buyers are particularly at risk for losing a purchase due to cost hikes associated with increasingly scarce material availability,” NAHB Chairman Chuck Fowke stated. “Policymakers must take note and find ways to increase production of domestic building materials, including lumber and steel, and suspend tariffs on imports of construction materials."
Housing Market Index levels above 50 are considered positive.
