Builder confidence increased one point in December to a level of 84 on the National Association of Home Builders/Wells Fargo Housing Market Index.
Builder confidence increased one point in December to a level of 84 on the National Association of Home Builders/Wells Fargo Housing Market Index.
The slight confidence boost in December, which tied February for the highest reading in 2021, was credited to strong consumer demand and limited existing inventory. However, several headwinds in the industry have persisted.
"While demand remains strong, finding workers, predicting pricing and dealing with material delays remains a challenge," stated NAHB Chairman Chuck Fowke.
The most pressing issue in the home building industry has continued to be a lack of inventory, according to NAHB Chief Economist Robert Dietz.
“Building has increased, but the industry faces constraints, namely cost/availability of materials, labor and lots,” Dietz stated. “And while 2021 single-family starts are expected to end the year 24% higher than the pre-COVID 2019 level, we expect higher interest rates in 2022 will put a damper on housing affordability."
Builder confidence levels above 50 are considered positive.