{"id":2705,"date":"2021-12-15T19:18:03","date_gmt":"2021-12-15T19:18:03","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2021\/12\/15\/builder-confidence-ends-the-year-on-a-high-note\/"},"modified":"2025-03-13T02:39:50","modified_gmt":"2025-03-13T02:39:50","slug":"builder-confidence-ends-the-year-on-a-high-note","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2021\/12\/15\/builder-confidence-ends-the-year-on-a-high-note\/","title":{"rendered":"Builder confidence ends the year on a high note"},"content":{"rendered":"\n<p>Homebuilder confidence in the market for newly built single-family homes is ending the year on a high note with the <strong>National Association of Home Builders<\/strong>\u00a0(NAHB) and\u00a0<strong>Wells Fargo Housing Market Index<\/strong>\u00a0(HMI), which was released on <a href=\"https:\/\/www.nahb.org\/news-and-economics\/industry-news\/press-releases\/2021\/12\/builder-sentiment-strong-at-years-end\" target=\"_blank\" rel=\"noreferrer noopener\">Wednesday,<\/a> rising one point to 84, equaling its highest reading since February.<\/p>\n\n\n\n<p>The NAHB\/HMI report is based on a monthly survey of NAHB members, in which respondents are asked to rate market conditions for the sale of new homes at the present time and in the next six months as well as the traffic of prospective buyers of new homes. Scores for each component of the survey are then used to calculate an index where any number over 50 indicates that more homebuilders view conditions as good than poor.<\/p>\n\n\n\n<p>Despite inflation concerns and ongoing production bottlenecks, this is the fourth consecutive month of increasing builder sentiment as consumer demand remains strong and existing <a href=\"https:\/\/preprod.realtrends.com\/blog\/housing-inventory-has-never-been-lower\/\" target=\"_blank\" rel=\"noreferrer noopener\">housing inventory<\/a> remains incredibly limited.<\/p>\n\n\n\n<p>\u201cThe most pressing issue for the housing sector remains lack of inventory,\u201d NAHB chief economist, Robert Dietz, said in a statement. \u201cBuilding has increased but the industry faces constraints, namely cost\/availability of materials, labor and lots. And while 2021 single-family starts are expected to end the year 24% higher than the pre-Covid 2019 level, we expect higher interest rates in 2022 will put a damper on housing affordability.\u201d&nbsp;<\/p>\n\n\n\n<p>After <a href=\"https:\/\/preprod.housingwire.com\/articles\/homebuilder-confidence-falls-to-lowest-level-since-august\/\" target=\"_blank\" rel=\"noreferrer noopener\">three months<\/a> of decline, homebuilder confidence began to steady in <a href=\"https:\/\/preprod.housingwire.com\/articles\/homebuilders-are-targeting-the-exurbs-and-inner-suburbs\/\" target=\"_blank\" rel=\"noreferrer noopener\">September<\/a>, but while builder sentiments are clearly back on the rise, the index remains six points lower than its all-time high set in <a href=\"https:\/\/www.nahb.org\/news-and-economics\/housing-economics\/indices\/housing-market-index\" target=\"_blank\" rel=\"noreferrer noopener\">November 2020<\/a>.<\/p>\n\n\n\n<p>NAHB chairman Chuck Fowke believes that builders\u2019 ability to predict material pricing and delivery timelines, remain a major hurdle in bringing builder sentiment back where it was in the fall of 2020.<\/p>\n\n\n\n<p>\u201cPolicymakers need to work on supply chain improvements and controlling costly inflation,\u201d Fowke said in a statement. \u201cAddressing lumber tariffs would be a good place to start.\u201d<\/p>\n\n\n\n<p>On a regional level, the three-month moving average HMI score rose four points in the Northeast and two points in the Midwest for both to end up at 74. The South and the West each posted three-point gains to rise to 87, respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Homebuilder confidence for newly built single-family homes is ending the year on a high note, with the NAHB housing market index hitting its highest reading since February.<\/p>\n","protected":false},"author":34740,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[1760],"class_list":["post-2705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Builder confidence ends the year on a high note - RealTrends - Blog<\/title>\n<meta name=\"description\" content=\"Homebuilder confidence in the market for newly built single-family homes is ending the year on a high note with the NAHB housing market index rising one point to 84, equaling its highest reading of the year from February.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/preprod.realtrends.com\/blog\/2021\/12\/15\/builder-confidence-ends-the-year-on-a-high-note\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Builder confidence ends the year on a high note\" \/>\n<meta property=\"og:description\" content=\"Homebuilder confidence in the market for newly built single-family homes is ending the year on a high note with the NAHB housing market index rising one point to 84, equaling its highest reading of the year from February.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/preprod.realtrends.com\/blog\/2021\/12\/15\/builder-confidence-ends-the-year-on-a-high-note\/\" \/>\n<meta property=\"og:site_name\" content=\"RealTrends - 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