The NAHB home builder confidence index is at its highest level in 11 years, but home construction plunged 19 percent last month.
CNBC found that the results are not mutually exclusive. Builders say that they have kept a positive mindset since the recession, and that the NAHB survey is skewed toward smaller builders and accounts for expected sales, not actual sales.
Bottom line, there is high demand for housing and very low supply of homes for sale. That makes builders confident. … So why aren't builders building more houses? Basic stuff: They are hamstrung by new regulations which are costing them up to a quarter of the price of a new home. They are facing a huge labor shortage and have been for a while.
Advertisement
Related Stories
New-Home Sales
Mortgage Rates Are Up but New-Home Sales Still Solid in March
Lack of existing home inventory drove a rise in new-home sales, despite higher interest rates in March
Labor + Trade Relations
Who's Earning What in Construction
Workers in construction management roles may earn a higher median wage, but on average, lower-paid occupations have experienced somewhat faster wage growth
Build to Rent
Build-to-Rent Is Booming, Particularly in These Metros
A recent report finds that the Phoenix metro leads with more than 4,000 build-to-rent units completed in 2023, and Texas is the leading state for build-to-rent development