Currently Reading

Builder Confidence Plummets in Historic Decline

Advertisement

Builder Confidence Plummets in Historic Decline


April 15, 2020
Builder installing windows
By auremar

Builder confidence dropped 42 points in April in the largest decline in the index’s history and the lowest reading since 2012, according to the NAHB/Wells Fargo Housing Market Index. For the first time since June 2014, builder confidence fell into negative territory, hitting 30 on the index. Financial experts say that this decline is entirely due to COVID-19: Before the pandemic started its spread in the country, the home building industry was cruising along in the best season it has had in awhile. But now with much of the U.S. shut down, buyer traffic has slowed to a snail’s pace for many builders.

Reflecting the growing effects of the COVID-19 pandemic, builder confidence in the market for newly-built single-family homes plunged 42 points in April to 30, according to the latest NAHB/Wells Fargo Housing Market Index (HMI) released today. The decline in April was the largest single monthly change in the history of the index and marks the lowest builder confidence reading since June 2012. It is also the first time that builder confidence has been in negative territory (below 50) since June 2014.

“This unprecedented drop in builder confidence is due exclusively to the coronavirus outbreak across the nation, as unemployment has skyrocketed and gaps in the supply chain have hampered construction activities,” said NAHB Chairman Dean Mon. “Meanwhile, there continues to be some confusion over builder eligibility for the Paycheck Protection Program, as some builders have successfully submitted loan applications while others have not been able to. NAHB is working with the White House, Treasury and Congress to get the broadest builder participation possible. Home building remains an essential business throughout most of the nation, and as the pandemic shows signs of easing in the weeks ahead, buyers should return to the marketplace.”

Read More

 

Related Stories

Forty Under 40

Pro Builder 2022 Forty Under 40 Nomination Form

Each year Pro Builder honors 40 rising stars of the home building industry with its Forty Under 40 Awards

Forty Under 40

Pro Builder 2022 Forty Under 40 Nomination Form

Each year Pro Builder honors 40 rising stars of the home building industry with its Forty Under 40 Awards

Forty Under 40

Pro Builder's Forty Under 40 Frequently Asked Questions

Answers to your Forty Under 40 questions and a link to the 2022 nomination form

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.