Builder confidence increased for the third month in a row in November, as demand for housing remained strong even in the face of serious supply chain challenges, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released on Tuesday.

The HMI increased three points in November, from 80 to 83, beating expectations. Back in September, the HMI was 76.

A report from the NAHB noted that continued low inventory coupled with intense buyer demand have sustained construction of single-family homes. That said, building materials, lot and labor shortages have constrained progress.

“Lot availability is at multi-decade lows and the construction industry currently has more than 330,000 open positions,” the NAHB’s report noted. “Policymakers need to focus on resolving these issues to help builders produce more housing to meet strong market demand.”

Credit: NAHB and Wells Fargo

The HMI that gauges builder perceptions of current sales conditions increased by three points to 89 while the HMI measuring builder sentiment for traffic of potential buyers also rose by three points to 68. The HMI for builders’ sales expectations for the next six months stayed the same at 84.

By region, the Midwest and South saw the strongest gains, with both HMIs increasing by four points to 72 and 84, respectively. The West HMI, meanwhile, rose by one point to 84 and the Northeast HMI declined two points to 70.

Email Lillian Dickerson

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