Builder confidence increased three points in November to a level of 83 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.
The confidence boost was due to a combination of low existing inventories and strong buyer demand, according to NAHB. Labor shortages and supply chain issues continue to threaten home builders, however.
"In addition to well publicized concerns over building materials and the national supply chain, labor and building lot access are key constraints for housing supply," stated NAHB Chief Economist Robert Dietz. "Lot availability is at multi-decade lows, and the construction industry currently has more than 330,000 open positions.”
Builder confidence levels above 50 indicate more builders view conditions as good than poor.
