Homebuilder Sentiment in U.S. Declines to an Eight-Month Low
A contractor carries a nail gun while working on a house under construction in the Norton Commons subdivision of Louisville.
Photographer: Luke Sharrett/BloombergThis article is for subscribers only.
Sentiment among American homebuilders deteriorated to an eight-month low in July on concerns about higher material costs, according to data Tuesday from the National Association of Home Builders/Wells Fargo.
Builders are faced with a tough choice when dealing with higher materials costs such as lumber -- either raise prices on homes or absorb the added expense. While they see demand remaining strong, an acceleration in prices on new homes risks putting some properties out of reach. Stable sales and construction mean housing will probably do little to add to economic growth.