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Housing demand soared despite the high price and low labor supply

Posted on December 16, 2021   |  

  • The poor supply of existing homes for sales is benefiting the builders due to high demand from investors as the build for rent sector continues to rise where single-family built for rent construction reached the highest volume in Q3.
  • On the National Association of Home Builders/Wells Fargo Housing Market Index, or HMI, builder sentiment in the single-family housing market grew by 1 point to 84 December, a 4th consecutive increase as anything above 50 is a favorable sentiment.
  • Of the three components of HMI, current sell positions increased by 1 point to 90, and buyer traffic also increased by 1 point to 70.
  • As per 3-month averages of HMI scores, Northeast rose 4 points to 74, the Midwest increased 2 points to 74 and the South and West each posted a three-point gain to 87, respectively.