MOBILE, AL (Jan. 20, 2022) — Market confidence is sinking as home builders face growing inflation and ongoing supply chain disruptions.
“Our cost of labor has gone up 8 percent year-over-year, and now with inflation, interest rates are going up. We’re not facing headwinds right now — we’re looking into the teeth of a superstorm,” National Association of Homebuilders CEO Jerry Howard told Fox Business Tuesday.
Homebuilding demand remains high, but home builder confidence dropped one point in January, from 84 to 83, according to the NAHB/Wells Fargo Housing Market Index.
“Higher material costs and lack of availability are adding weeks to typical single-family construction times,” NAHB Chairman Chuck Fowke said.
Fowke also said the overall cost of residential construction materials increased almost 19 percent since December 2020.
About the NAHB/Wells Fargo Housing Market Index
The NAHB/Wells Fargo HMI asks builders to rank market factors for the next six months as “good,” “fair” or “poor.”
The survey also asks about the traffic rate of prospective buyers as “high to very high,” “average” or “low to very low.”
Scores for each are seasonally adjusted, and