(NAHB) US builder sentiment rose one point, the fourth straight month of index gain to 84 in December amid cost increases.
The gauge on current sales conditions improved by one point to 90, while the traffic of prospective buyers’ index also surged by a similar margin to 70. The sales expectations index for the next six months held steady at 84.
The builder sentiment for newly constructed single-family homes was up one point to 84 this month.
The housing index rose four points in the Northeast to 74, while the Midwest recorded a two-point improvement to 74. The South and West each reported three-point gains to 87.
The rise in confidence at year-end happens amid rising inflation and production declines, with the housing sector challenged by the lack of inventory.
NAHB Chairman Chuck Fowke says housing demand remains strong but finding workers, material delays, and predicting prices remain a challenge. He recommends tackling costly inflation, supply chain issues, and lumber tariffs for improvements in the housing sector.
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