NAHB

The increase represents a spot of good news for homebuilders in a year marked by uncertainty surrounding tariffs and still-challenging interest rate levels.

Even with direct costs of import taxes excluded, prices for residential construction goods and services increased by the most in two years, NAHB said.

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.

U.S. homebuilder sentiment rose for a fourth month in April as limited resale inventory helped drive demand for new houses, suggesting the residential real estate market is slowly recovering.

Less than one-third of households would be able to afford 2022's median-priced new home, according to the National Association of Homebuilders.

Interest rates and inflation are at the top of the list of problems facing the industry, but attracting consumers under current market conditions has become more concerning, according to the National Association of Home Builders.

Issuances decreased over 10% annually, while at the same time, builders are still seeing shortages of many materials, according to the National Association of Home Builders.

The share of single-family constructions located in homeowner's associations grew to over 67% in 2020, according to the National Association of Home Builders.

Concrete prices have surged 10.7% in 2022, but the cost of once-volatile softwood lumber has moderated greatly since the summer, according to the National Association of Home Builders.

The decline in loan activity and softening prices also helped drive down builder sentiment for the 11th month in a row.

New-home mortgage applications fell 13.2% on an annual basis, while average purchase sizes declined for the fifth straight month.