The U.S. Housing industry has been booming of late on surging demand for homes since the pandemic. Yet, rising material costs and supply chain disruptions have de-motivated homebuilders, as is evident from the latest builder confidence reading for June. The NAHB/Wells Fargo Housing Market Index (HMI) reading unveils that sentiment among U.S. homebuilders for newly-built single-family homes slipped to the lowest level since August 2020.
Per the latest HMI, builder confidence fell two points to 81 this month from the May reading of 83.
Despite the sequential drop in homebuilders’ sentiment for June, the reading above 80 still signals strong demand in the housing market. Americans are seeking more work-at-home space to mitigate the risk of the virus spread, which is ultimately boosting demand. Notably, work-from-home or stay-at-home mandates encouraged homeowners to take on more DIY and other home improvement projects that will further benefit repair and remodeling activities.
On Jun 15, industry bellwethers like M.D.C. Holdings, Inc. (MDC – Free Report) , Beazer Homes USA, Inc. (BZH – Free Report) , Tri Pointe Homes, Inc. (TPH – Free Report) , PulteGroup, Inc. (PHM – Free Report) and Toll Brothers, Inc. (TOL – Free Report) gained 2.4%, 1.8%, 1.6%, 1.3% and 1.2%, respectively, following the news.
Image Source: NAHB
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