US Builder Confidence Rises to 8-Month High in December

Workers attach siding to a house at a construction site in Trappe, Md., on Oct. 28, 2022. Jim Watson/AFP via Getty ImagesU.S. builder confidence continued to rise in December, reaching its highest level in eight months, but ended the year below the neutral level, according to a Dec. 15 report from the National Association of Home Builders (NAHB).The NAHB/Wells Fargo Housing Market Index (HMI) inched up one point to 39 in December, the highest reading since April. However, sentiment remained below the breakeven level of 50 in every month this year.The lower scores are attributed to several factors, including escalating construction costs, tariffs and economic uncertainty, and the fact that many potential buyers are still on the fence due to worries about affordability.“Market conditions remain challenging with two-thirds of builders reporting they are offering incentives to move buyers off the fence,” Buddy Hughes, NAHB chairman and a homebuilder in Lexington, North Carolina, said in the report.