NAHB’s Robert Dietz on declining home builder confidence
In today’s HousingWire Daily episode, National Association of Home Builders Chief Economist Robert Dietz discusses the latest NAHB and Wells Fargo Housing Market Index. According to the report, sentiment declined in January as supply constraints and rising costs negatively impacted homebuilders.
During the interview, Dietz also explains what the drop in the index means for builder confidence now and for the rest of 2021.
For some background on the interview, here’s a brief summary of HousingWire’s latest coverage on builder confidence:
Homebuilder confidence in the U.S. fell to a four-month low in January as builders expressed concerns about higher house prices, COVID-related supply chain issues and construction costs.
Builder confidence in single-family homes dropped to 83 in January from 86 in December, according to the National Association of Home Builders and Wells Fargo Housing Market Index. It’s the second straight monthly decline in sentiment.
Rising material costs, in particular lumber, pushed sentiment down. A resurgence of coronavirus cases also contributed to the weakening number. But builder sentiment overall remains strong, per NAHB officials.
“Despite robust housing demand and low mortgage rates, buyers are facing a dearth of new homes on the market, which is exacerbating affordability problems,” said NAHB Chairman Chuck Fowke, a custom home builder from Tampa, Florida. “Builders are grappling with supply-side constraints related to lumber and other material costs, a lack of affordable lots and labor shortages that delay delivery times and put upward pressure on home prices.”
The HMI index gauging current sales conditions dropped two points to 90, while the component measuring sales expectations in the next six months fell two points to 83. The gauge charting traffic of prospective buyers decreased five points to 68.
HousingWire Daily examines the most compelling articles reported from the HousingWire newsroom. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsroom that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Wickham.
HousingWire articles covered in this episode: