Builder confidence in the market for newly built single-family homes rose five points in June to 55, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) released Monday. This marks the sixth straight month that builder confidence has increased and is the first time that sentiment levels have moved into positive territory since July 2022.

“Builders are feeling cautiously optimistic about market conditions given low levels of existing home inventory and ongoing gradual improvements for supply chains,” said NAHB Chairman Alicia Huey, a custom home builder and developer from Birmingham, AL. “However, access for builder and developer loans has become more difficult to obtain over the last year, which will ultimately result in lower lot supplies as the industry tries to expand off cycle lows.”

Added NAHB chief economist Robert Dietz, “Shelter cost growth is now the leading source of inflation, and such costs can only be tamed by building more affordable, attainable housing – for-sale, for-rent, multifamily and single-family. By addressing supply chain issues, the skilled labor shortage, and reducing or eliminating inefficient regulatory policies such as exclusionary zoning, policymakers can play an important and much-needed role in the fight against inflation.”