By Robert Dietz | Eye On Housing
Rising material costs led by a huge upsurge in lumber prices, along with a resurgence of the coronavirus across much of the nation pushed builder confidence in the market for newly built single-family homes down three points to 83 in January, according to the latest NAHB/Wells Fargo Housing Market Index (HMI). Despite the drop, builder sentiment remains at a strong level.
Housing affordability also faces rising challenges given home price gains and a lack of inventory. Builders are grappling with supply-side constraints related to lumber and other material costs, a lack of affordable lots and labor shortages that delay delivery times and put upward pressure on home prices.