As lumber prices rise, builder confidence falls

​​WASHINGTON – National builder confidence in the new single-family home market fell two points to 68 in June on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI).

The decline was due in large part to rising lumber prices, although sentiment remains on solid footing. 

“Builders are optimistic about housing market conditions as consumer demand continues to grow," said NAHB Chairman Randy Noel. “However, builders are increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability. Record-high lumber prices have added nearly $9,000 to the price of a new single-family home since January 2017."

All three HMI indexes inched down a single point in June. The index measuring current sales conditions fell to 75. The one gauging expectations in the next six months dropped to 76, and the metric measuring buyer traffic fell to 50.

Regionally, the South’s HMI fell one point to 71. 

For details on Texas new home affordability, read "Home Delivery: Where is All the New Housing?" a Tierra Grande digital first by Center Research Economist Dr. Luis Torres and Research Associate Wesley Miller.​