The April NAHB/Wells Fargo Housing Market Index (HMI) shows that home builders reversed a one-month decline in sentiment, increasing by four points to 56.
Consistent with this rebound in sentiment is the Census-estimated housing starts increase of 2 percent to a seasonally adjusted annual rate of 926,000 in March. Single-family starts increased 4.4 percent to a 618,000 rate, while multifamily starts dropped to a 308,000 pace, the lowest monthly rate since September 2013.
According to the NAHB, builders continue to be concerned about lot availability and access to labor. Additionally, the rising cost of these scarce resources and the rising cost of materials continues to squeeze builders’ profits.