Builder confidence for newly built single-family homes increased to 34 in May, down six points from April, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
NAHB attributed the decline to growing uncertainties stemming from elevated interest rates, tariff concerns and building material cost uncertainty. Most responses were collected before the May 12 announcement that the U.S. and China would pause tariffs.
“The spring home buying season has gotten off to a slow start as persistent elevated interest rates, policy uncertainty and building material cost factors hurt builder sentiment in May,” NAHB Chairman Buddy Hughes said in a statement. “Builders expect future trade negotiations and progress on tax policy will help stabilize the economic outlook and strengthen housing demand.”
The HMI survey revealed that 34% of builders cut home prices in May, up from 29% in April and the highest level since December 2023.
Index levels below 50 indicate more builders view market conditions as “poor” than “good.”
Read the full report here.
