Builder sentiment set a record for the second consecutive month, reaching 85 in October compared with 83 during the previous month. September and October are the first instances ever when the NAHB/Wells Fargo Housing Market Index has been above 80.
“Traffic remains high and record-low interest rates are keeping demand strong as the concept of ‘home’ has taken on renewed importance for work, study and other purposes in the COVID-19 era,” said NAHB Chairman Chuck Fowke, a builder from Tampa, Florida. “However, it is becoming increasingly challenging to build affordable homes as shortages of lots, labor, lumber and other key building materials are lengthening construction times.”
Builders slowed or stopped production in the first months of the pandemic and were caught off guard by the sudden consumer demand that hit their market in May. Existing land pipelines were therefore depleted much faster than builders expected.
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