Builders are dealing with continued construction material production shortages, according to NAHB Chief Economist Robert Dietz. He said that “These delivery delays are raising construction costs and pricing prospective buyers out of the market. Residential construction costs are up 21 percent on a year-over-year basis. Higher interest rates in 2022 will further reduce housing affordability even as demand remains solid due to a lack of resale inventory.” However, as it has done for the past five months, the index shows steady levels at or above the 80-point line.

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