Home builders have a unique perspective on the housing market. After all, their success depends on being able to know what buyers want, where they want it, and when. That’s why the National Association of Home Builders’ monthly Housing Market Index – which measures builder confidence in the market for newly built, single-family homes – is a closely watched barometer of market health. If builders feel good about their prospects, chances are the market is in good shape. The index is scored on a scale where any number above 50 indicates more builders view conditions as good than poor. In October, it saw its second-consecutive monthly improvement, rising to 43 from 41 the month before – with the index component measuring expectations for the next six months up four points to 57. Carl Harris, NAHB’s chairman, says builders feel good about 2025. “While housing affordability remains low, builders are feeling more optimistic about 2025 market conditions,” Harris said. (source)
