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| NAHB Housing Market Index |
| The National Association of Home Builders’ Housing Market Index rose to 85 in October, setting yet another record high after last month’s print of 78. Looking YoY, the index is up from 71 back in October 2019. Within the index, the current sales conditions rose +2 points to 90, sales expectations in the next 6 months increased by +3 points to 88, and buyer traffic remained unchanged at 74. Two regions saw +7 point gains this month, with the Northeast jumping to 88, and the West to a strong print of 95. However, the other two regions actually saw slight declines, with the Midwest down -1 to 77 and the South down -2 to 83. All remained well up over a year ago, when the Northeast was at 60, the West was at 83, the Midwest was at 57, and the South at 76. “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 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.” Although confidence remains at a very high level, builders are struggling to ramp up production, and while housing starts and building permits are rising slowly, they are not even close to meeting demand. “The housing market continues to be a bright spot for the economy, supported by increased buyer interest in the suburbs, exurbs and small towns,” said NAHB chief economist Robert Dietz. “New single-family home sales are outpacing starts by a historic margin. Bridging this gap will require either a gain in construction volume or reductions in available inventory, which is already at a historic low in terms of month’s supply.” |
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