The NAHB/Wells Fargo Housing Market Index fell by three points to 83 for January, reflecting a drop in builder confidence led by rising lumber prices and COVID-19 case numbers. The reading is derived from a monthly survey that the NAHB has conducted for 35 years, and still reflects an incredibly high level of builder confidence, above the pre-2020 survey high of 78.
“Despite robust housing demand and low mortgage rates, buyers are facing a dearth of new homes on the market, which is exacerbating affordability problems,” says NAHB Chairman Chuck Fowke, a custom home builder from Tampa, Florida. “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. They are also concerned about a changing regulatory environment.”
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