Home builders are facing many challenges these days. From the supply chain to labor and lot shortages, it’s a difficult time to be in the home-building business. But despite all of those issues, the National Association of Home Builders’ Housing Market Index – which measures how confident home builders are feeling on a scale where any number above 50 indicates more of them view conditions as good than poor – scored an 83 in November, up three points from the month before. So what explains the high level of optimism among home builders? Put simply, it’s buyer demand. “The solid market for home building continued in November despite ongoing supply-side challenges,” Chuck Fowke, NAHB’s chairman, said. “Lack of resale inventory combined with strong consumer demand continues to boost single-family home building.” In other words, buyer demand for homes remains elevated and the number of homes for sale remains lower than historically normal. That means, homes are in high demand and, despite current conditions, builders are feeling good about the market.
