Home builder confidence declined for the second consecutive month, with the National Association of Home Builders (NAHB)reporting a drop in their confidence index from 42 in February to 39 in March. This figure represents the lowest level since August and falls well below the neutral benchmark of 50, signaling contraction.
All three components of the index – buyer traffic, current sales and future sales expectations – remain below 50. Notably, current sales conditions (down 3 points to 43) reached their lowest level since December 2023.
What’s the bottom line? The key factors dampening builder sentiment were economic uncertainty, high costs, and tariff threats, though they expressed hope that a more favorable regulatory environment would improve the business climate, according to the NAHB.
