Builder confidence plummets in NAHB survey
Builder confidence in the market for newly built single-family homes fell four points to 34 points in April, according to NAHB/Wells Fargo Housing Market Index (HMI). This is the lowest level since Sept. 2025.
“Builder sentiment has fallen back in spring as buyers face ongoing elevated interest rates and growing economic uncertainty,” said NAHB Chairman Bill Owens, a home builder and remodeler from Worthington, OH, in the press release “The year started with hopes for housing momentum growth, but risks with respect to the Iran war, energy costs, and declines for consumer confidence have slowed the market.”
“With oil prices higher in the U.S., 62% of builders reported suppliers have increased building material costs due to higher fuel prices, including gas and diesel,” added NAHB Chief Economist Robert Dietz. “Energy costs make up approximately 4% of residential construction material input and service costs. With near-term economic risks elevated, 70% of builders reported challenges pricing homes given uncertainty about material costs.”
Architecture firm billings held steady in March
The AIA/Deltek Architecture Billings Index (ABI) published monthly by the American Institute of Architects (AIA) scored 49.8 points, reflecting near-equal shares of firms reporting increases and decreases. This marks the closest the index has come to the 50-point growth threshold since early 2023.
New project inquiries rose steadily, and firm backlogs averaged 6.6 months, the highest since Dec. 2023. Multi-family residential backlogs grew from 5.4 months in December to 6.2 months in March, while institutional backlogs remained steady at 8.2 months. However, design contracts declined for the 25th consecutive month, with the slowdown worsening from February. “While billings could soon see positive growth for the first time in three years, ongoing economic and geopolitical challenges, such as the Iran conflict and labor shortages, pose significant risks to recovery,” said AIA Chief Economist, Richard Branch, in the release. “These external issues will have a significant impact on of construction activity in both the near and long term.”
