NAHB Chairman Jerry Konter said the rise in builder sentiment means that cycle lows for permits and starts are likely near, and a rebound for home building could be underway later in 2023.
While new home sales received a slight bounce in November from moderating mortgage rates, the housing market continues to struggle because of ongoing supply chain disruptions, elevated construction costs and challenging affordability conditions.
The International Surface Event (TISE) will co-date with DCW, which features the National Association of Home Builders’ (NAHB) International Builders’ Show (IBS) and the National Kitchen & Bath Association’s (NKBA) Kitchen & Bath Industry Show (KBIS), National Hardware Show (NHS) and The Las Vegas Winter Market.
NAHB reports that multifamily units under construction is reaching a near 50-year high, and multifamily permit growth is weakening. Single-family housing starts continued to fall in November.
While builder confidence for newly built single-family homes posted declines for 12 straight months, NAHB reports that builders are registering an increase in future sales expectations.
The prospects for continued high levels of multifamily development declined significantly in the third quarter, as did the prospects for continued high occupancy rates, according to results from the Multifamily Market Survey (MMS) released by NAHB.
Elevated interest rates, stubbornly high building material costs and declining affordability conditions that are pushing more buyers to the sidelines continue to drag down builder sentiment.
In some areas of the country a growing number of remodelers are seeing signs of a slowdown due to the ongoing problems of labor shortages, high material prices and rising interest rates.
