Builder Confidence Edges Up as Strong Demand Offsets Supply-Side Challenges

Strong buyer demand pushed builder confidence up in April even as builders continued to grapple with rising lumber prices and supply chain issues and consumers faced higher home prices due to a lack inventory. The latest National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released shows that builder confidence in the market for newly built single-family homes rose one point to 83 in April.

"Despite strong buyer traffic, builders continue to face challenges to add much needed housing supply to the market," said NAHB chairman Chuck Fowke, a custom home builder from Tampa, Florida. "The supply chain for residential construction is tight, particularly regarding the cost and availability of lumber, appliances, and other building materials. Though builders are seeking to keep home prices affordable in a market in need of more inventory, policymakers must find ways to increase the supply of building materials as the economy runs hot in 2021."