flexiblefullpage - default
Currently Reading

Home Builder Confidence Drops to Two-Year Low as New Construction Projects Slow

New-Construction Projects

Home Builder Confidence Drops to Two-Year Low as New Construction Projects Slow

The pace of new residential construction is slowing nationwide as buyer demand falters amid fast-rising inflation 


July 20, 2022
New home framed under construction
Image: Stock.adobe.com

The residential construction industry could be on the verge of a substantial slowdown as elevated inflation and supply chain constraints forced many builders to halt new home construction in July, Forbes reports. Builder confidence in the new home market posted its seventh consecutive monthly decline in July after falling 12 points to 55, its second-largest single-month drop in the data’s history, according to the most recent NAHB/Wells Fargo Housing Market Index.

In some cases, the cost of land, construction, and financing exceed a home’s market value, leaving little incentive for building new homes in a frazzled economy. Home builder expectations for current and future sales also fell sharply as many regional builders anticipate less buyer traffic and greater affordability concerns in the months ahead.

In emailed comments, Pantheon Macro chief economist Ian Shepherdson said confidence has “further to fall,” noting that Federal Reserve Chair Jerome Powell last month alluded to the housing market’s “complicated situation,” saying potential home buyers "need a bit of a reset" as mortgage rates normalize at higher levels after remaining historically low during the pandemic.

Read more

Related Stories

Quality Matters

Better Attic Insulation: Simple Solutions for 4 Common Problem Areas

Home builders generally do a good job with blown-in-place attic insulation but should take care with these common trouble spots to ensure a better insulation job and greater home energy efficiency

Jobsite Safety

Excavation and Trench Safety Best Practices for Construction Jobsites

Trenching and excavating are two of the most dangerous activities in the construction industry. Know the risks and the corrective measures you should take on your jobsites to ensure crew safety

New-Construction Projects

Builders Pause New Projects as Home Sales Slow, but Experts Say the Time to Build Is Now

Regional builders are holding off on new construction projects as buyer demand dips, but experts worry that delayed development will add to a decades-old housing shortage 

Advertisement
boombox1 -
Advertisement
native1 - default

More in Category




Advertisement
native2 - default
Advertisement
halfpage1 -

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.