11-17-21 | News

Builder Confidence Up

Supply Issues Persist

According to the NAHB/Wells Fargo Housing Market Index (HMI) that was recently released, builder confidence is up due in part to high demand and low inventory.

Amidst low housing inventory, supply chain issues, and high demand, builder confidence is bolstered for the third consecutive month according to the NAHB/Wells Fargo Housing Market Index (HMI) that was recently released.

The HMI index that gauges current sales conditions rose three points to 89 while the gauge charting traffic of prospective buyers also posted a three-point gain to 68. The component measuring sales expectations in the next six months held steady at 84.


Looking at the three-month moving averages for regional HMI scores, the Midwest rose four points to 72, the South registered a four-point gain to 84, and the West rose one point to 84 meanwhile, the Northeast fell two points to 70.

"In addition to well publicized concerns over building materials and the national supply chain, labor and building lot access are key constraints for housing supply," explained NAHB Chief Economist Robert Dietz, "Lot availability is at multi-decade lows and the construction industry currently has more than 330,000 open positions. Policymakers need to focus on resolving these issues to help builders produce more housing to meet strong market demand."


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