ConstructioNext is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

NAHB: Builder Confidence Hits 13-Month Low

Article-NAHB: Builder Confidence Hits 13-Month Low

RE_BuildingConstruction.jpg
The HMI is based on a monthly survey conducted by the National Association of Home Builders (NAHB) that measures builder perceptions on currently single-family home sales and gets their outlook for the next six months using the ranking of “good,” fair” or poor.

Screen Shot 2021-08-17 at 5.03.06 PM.pngOn Tuesday, the latest National Association of Home Builders/Wells Fargo Housing Market Index (HMI) was released, revealing that builder sentiment for newly-built single-family homes fell five points to 75 in August. This represents a 13-month low from July 2020.

The HMI is based on a monthly survey conducted by the National Association of Home Builders (NAHB) that measures builder perceptions on currently single-family home sales and gets their outlook for the next six months using the ranking of “good,” fair” or poor. If the HMI is above 50 it means that more builders “view conditions as good than poor.”

NAHB’s Rose Quint, attributes this low to higher construction costs and supply shortages leading to significant price growth. “The decline in the buyer traffic index to its lowest level since July 2020 is evidence that supply-side constraints have begun to hold consumers back,” said Quint in the NAHB blog.

To read the full blog, click here.

Hide comments
account-default-image

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish