While longer-commute areas have a much greater market share in single-family home building, the single-family construction growth rates in the first quarter of 2021 were strongest in the areas with the shortest commuting times.
The effect of high lumber prices on low- and moderate-income families is a top concern of NAHB and the Biden administration, noted NAHB's Immediate Past Chairman Greg Ugalde.
Rising building materials costs and low inventory have caused new home sales prices to jump 20 percent on a year-over-year basis, harming housing affordability and driving down the pace of new home sales.
"Builder confidence in the market remains strong due to a lack of resale inventory, low mortgage interest rates and a growing demographic of prospective home buyers," said NAHB chairman Chuck Fowke.
Regulations imposed by all levels of government account for $93,870, or 23.8 percent of the current average sales price ($397,300) of a new single-family home.
Housing affordability weakened slightly during the first quarter of 2021 as rising material costs and supply shortages along with expected increases in mortgage rates stemming from a growing economy are likely to exacerbate affordability challenges in the year ahead.
NAHB released the survey results, which highlights how the pandemic affected remodelers' businesses, to kick off National Home Remodeling Month in May.
