Builder sentiment continued to weaken in February due to worsening supply chain bottlenecks and rising construction costs, according to the National Association of Home Builders (NAHB).
Builder confidence in the market for newly constructed single-family homes slipped one point to a reading of 82 in February, the NAHB/Wells Fargo Housing Market Index (HMI) revealed. This marked the second consecutive month that the HMI has dropped by a single point. However, the index has posted solid readings at or above the 80-point benchmark for the past five months.
“Production disruptions are so severe that many builders are waiting months to receive cabinets, garage doors, countertops and appliances,” NAHB chairman Jerry Konter said. “These delivery delays are raising construction costs and pricing prospective buyers out of the market. Policymakers must make it a priority to address supply chain issues that are harming housing affordability.”
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