Builder confidence declined one point in February to a level of 82 on the National Association of Home Builders/Wells Fargo Housing Market Index. It’s the second consecutive month to record a one-point decline in builder sentiment.
NAHB cited rising construction costs and delayed projects for the decline in confidence.
"Production disruptions are so severe that many builders are waiting months to receive cabinets, garage doors, countertops and appliances," NAHB Chairman Jerry Konter said in a statement. "These delivery delays are raising construction costs and pricing prospective buyers out of the market.”
Residential construction costs increased 21% year-over-year, NAHB Chief Economist Robert Dietz added.
"Higher interest rates in 2022 will further reduce housing affordability even as demand remains solid due to a lack of resale inventory,” Dietz said in a statement.
Builder confidence levels over 50 are considered positive.
