The rise in builder confidence for August marks the first month of improvement since May. Despite a strong economy, builders will continue to face supply-side challenge. The labor shortage along with a shortage of available land to develop already put a strain on a builder’s ability to match the current demand. The current rise in prices for materials could also hurt many builders and their projects. Despite the labor shortage, the residential construction sector added 5,100 new jobs in July.
Current Conditions in the Construction Industry
The Construction industry is finally bouncing back, as builder confidence rebounded in August. According to the National Association of Home Builders, builder optimism in the market, and even the market itself, is strengthening. This is due partly to the rising demand brought on by job and economic growth along with competitive mortgage rates.