NAHB

The leading homebuilder trade group was joined by a consortium of state attorneys' general in the filing, alleging higher costs to both its members and potential buyers of new units.

While the lock-in effect on existing supply has helped drive consumer interest in new construction, first-time buyers have been taking a greater share of that inventory.

While the pace of consumer inflation is showing signs of slowing, building material costs are running counter to the trend, according to the National Association of Home Builders.

Lumber prices climbed higher for the first time since July, but prospects for single-family construction to grow look promising based on early-year data.

Even with the recent pickup, builder sentiment may remain below its longer-term average until borrowing costs fall more significantly.

While prices for concrete, steel and gypsum products all increased, softwood lumber declined, the National Association of Home Builders said.

Homebuilder sentiment fell to a nine-month low in October, the latest indication of the toll on residential real estate from soaring mortgage rates and declining affordability.

But that was offset by a decrease in most other residential construction materials, the National Association of Home Builders said.

Even though the price of softwood lumber has climbed up by more than 7% in the last three months, it sits 21% below its level from a year ago.

Construction activity in smaller cities also saw a significant annual decline, according to the National Association of Home Builders.