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Home Economy

Home builder confidence rises in February

February 15, 2023
Reading Time: 1 min read

The National Association of Home Builders (NAHB) /Wells Fargo Housing Market Index (HMI) increased 7 points to 42 in February.

“With the largest monthly increase for builder sentiment since June 2013, the HMI indicates that incremental gains for housing affordability have the ability to price-in buyers to the market,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, Ala.

“The nation continues to face a sizeable housing shortage that can only be closed by building more affordable, attainable housing. However, the two monthly gains for the HMI at the start of 2023 match the cautious optimism noted by the large number of builders at the recent International Builders’ Show in Las Vegas, who reported a better start to the year than expected last fall.”

The HMI index gauging current sales conditions rose six points to 46 and traffic of prospective buyers increased six points to 29. The component charting sales expectations in the next six months increased eleven points to 48.

Looking at the three-month moving averages for regional HMI scores, the Northeast rose four points to 37, the Midwest edged one-point higher to 33, the South increased four points to 40 and the West moved three points higher to 30.

Read the NAHB release.

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