As material costs and interest rates rise, home builders are pulling back.
Homebuilders are rapidly losing confidence in their ability to turn a profit on new houses, Nathan writes.
Homebuilder sentiment experienced its second-largest one-month drop in July, according to the National Association of Home Builders/Wells Fargo Housing Market Index released Monday.
The gauge — which has been reported monthly since 1985 — fell from 67 in June to 55 in July, trailing only April 2020 as the largest one-month decline.
What they’re saying: “Production bottlenecks, rising home building costs and high inflation are causing many builders to halt construction,” NAHB chairman Jerry Konter, a home builder and developer from Savannah, Georgia, said in a statement.Axios Closer By Hope King and Nathan Bomey · Jul 18, 2022