Builder confidence dropped two points in March to a level of 79 on the National Association of Home Builders/Wells Fargo Housing Market Index.
It is the fourth consecutive month of builder confidence decline and the first time the index has fallen below the 80-point mark since September, according to NAHB. Index levels above 50 are considered positive.
“While builders continue to report solid buyer traffic numbers, helped by historically low existing home inventory and a persistent housing deficit, increasing development and construction costs have taken a toll on builder confidence,” stated NAHB Chairman Jerry Konter.
Residential construction material prices increased 18.4% year-over-year in February.
The NAHB issued a statement calling upon the U.S. to eliminate tariffs on lumber from Canada and increase domestic timber production on federal lands.
“We call upon policymakers to act now to ease supply-chain woes,” Konter stated. “Improving access to lumber, OSB and other materials will help builders increase the supply of badly-needed housing and fight inflation.”
