Builder confidence in the 55-plus single-family housing market rose by one point in the second quarter, from 66 to 67, according to an index of the National Association of Home Builders. The index is a gauge of builder opinion on the relative level of current and future sales.
It is a diffusion index, which means that a reading above 50 indicates a favorable outlook; below 50 indicates a negative outlook.
“The good news is that builders continue to report strong demand for new housing, fueled by steady job and income growth along with rising household formations,” NAHB Chairman Randy Noel said.
Builders, however, increasingly are focused on growing affordability concerns, stemming from rising construction costs, shortages of skilled labor and a dearth of buildable lots, he added. Many builders also are concerned that material prices will increase even more as President Trump ramps up pressure on trading partners.
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