Home builder confidence for the newly-built, single-family home market remained high in September, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
“Despite rising affordability concerns, builders continue to report firm demand for housing, especially as millennials and other newcomers enter the market,” NAHB chairman Randy Noel said in a statement. “The recent decline in lumber prices from record-high levels earlier this summer is also welcome relief, although builders still need to manage construction costs to keep homes competitively priced.”
A growing economy and rising incomes should continue to boost demand for new single-family homes, according to NAHB chief economist Robert Dietz.
“However, housing affordability is becoming a challenge, as builders face overly burdensome regulations and rising material costs exacerbated by an escalating trade skirmish. Interest rates are also forecasted to keep rising,” Dietz said.
For more, visit www.nahb.org.
This article originally appeared in the November 2018 issue.