According to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built single-family homes climbed three points to 51 in March – the highest level since July 2023 and the fourth consecutive monthly gain for the index. A score of 50 is considered the breakeven point. The NAHB says that a lack of existing inventory continues to drive buyers to new home construction, coupled with strong demand and mortgage rates below last fall’s cycle peak helped push builder sentiment above a key marker in March.
“Buyer demand remains brisk and we expect more consumers to jump off the sidelines and into the marketplace if mortgage rates continue to fall later this year…But even though there is strong pent-up demand, builders continue to face several supply-side challenges, including a scarcity of buildable lots and skilled labor, and new restrictive codes that continue to increase the cost of building homes.” said NAHB Chairman Carl Harris, a custom home builder from Wichita, Kan.
Click here to read the full report at the NAHB.
