Higher construction costs, rising home prices and building supply shortages have combined to drop builder confidence to its lowest level in 13 months, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
Building material prices have increased a record 13% year to date and 19.4% over the past 12 months, the Bureau of Labor Statistics recently reported.
By contrast, the average rise of building materials prices between January and July was +1.2% from 2015 through 2019 (the most recent data available), less than one-tenth of 2021's current gain.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
