Following a drop this summer, builder confidence rose from 76 to 80 points in October, according to the National Association of Home Builders.

Builder confidence continued its upward streak after a lull in the summer months, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on Monday.

Confidence rose four points from 76 to 80 in October. It’s the second month of increases after declines in June, July and August. Strong interest in homebuilding has continued due to soaring home prices and lack of available inventory but builder confidence has been curbed by a labor shortage and the rising costs of building materials, according to the new report.

“Homebuilders continue to grapple with supply-chain disruptions and labor shortages that are delaying completion times and putting upward pressure on building material and home prices,” NAHB chairman Chuck Fowke said in a statement.

The index is based on a scale from zero to 100 and gauges builder perceptions of single-family homes sales and sale expectations for the next six months. While drops do indicate falling confidence, anything above 50 is still considered a high number.

“Builders are getting increasingly concerned about affordability hurdles ahead for most buyers,” NAHB Chief Economist Robert Dietz said in a statement.

Current sales conditions rose five points to 87 while prospective buyer traffic rose four points to 65. Sales expectations in the next six months rose 3 points to 84. Every region in the U.S. saw its confidence increase but none as dramatically as Northeast, where it jumped from 67 to 73. All regions in the U.S. saw minor drops in builder confidence but the number are still quite high historically.

While the monthly change is lower, confidence is still at its highest in the West at 85. The South is close behind at 84.

Email Veronika Bondarenko

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription