Confidence in the market for new multifamily housing was in positive territory for the second quarter, according to results from the Multifamily Market Survey (MMS) released by the National Association of Home Builders (NAHB).

Rising mortgage rates and high construction costs stemming from a dearth of construction workers, a lack of buildable lots and ongoing shortages of distribution transformers put a chill on builder sentiment in August. 

Rising mortgage rates in June, coupled with elevated construction costs and supply chain issues for electrical transformers, acted as headwinds on the new home sales market.

Builders are feeling cautiously optimistic about market conditions given low levels of existing home inventory and ongoing gradual improvements for supply chains.

The National Association of Home Builders (NAHB) redesigned its Multifamily Market Survey (MMS) in the first quarter of 2023 to make it easier to interpret and more similar to the NAHB/Wells Fargo Housing Market Index for single-family housing.

A lack of existing inventory and stabilizing mortgage rates helped push single-family production up to the highest rate thus far in 2023 even as builders continue to deal with high construction costs, persistent labor shortages and tightening credit conditions for construction loans.  

Limited existing inventory, which has put a renewed emphasis on new construction, resulted in a solid gain for builder confidence in May even as the industry continues to face several challenges, including building material supply chain disruptions and tightening credit conditions for construction loans.

More than 100 top flooring executives met at the 2023 Spring Board of Directors and Associate Member Meeting at Montage Palmetto Bluff in Bluffton, South Carolina, where they discussed the health of the resilient market, opportunities in supply chain—and the future of AI in manufacturing. 

U.S. households saw homeowners and families embark on a wide variety of renovations and remodeling projects over the past year, according to a joint study from the National Association of Realtors and the National Association of the Remodeling Industry.

For the fourth straight month, builder confidence has increased due to a lack of resale inventory despite elevated interest rates, according to NAHB.