High demand for homes remains strong despite supply chain woes.
As the housing market remains extremely strong, supply chains are trying to catch up. According to CNBC, builder confidence in the single-family home construction market rose 4 points to 80 in October on the National Association of Home Builders/Wells Fargo Housing Market Index. That is still down from 85 in October 2020 and from the record high 90 in November of last year. Anything above 50 is considered positive.
The biggest concern for builders now is affordability, as they raise prices to meet the rising costs of land, labor and materials.
The median price of a newly built home sold in August was 20% higher than August of 2020, according to the U.S. Census. While some of that is the mix of homes selling — more on the high end of the market — it also reflects builder increases.