U.S. Homebuilder Sentiment Drops to 13-Month Low as Costs Bite

  • Index fell for third month on supply constraints, high prices
  • Midwest and South reached lowest confidence levels in a year

Homes under construction in the Woodbridge subdivision in Sumter, South Carolina.

Photographer: Micah Green/Bloomberg
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U.S. homebuilder sentiment fell to a 13-month low in August amid high prices and costs as well as continuing supply shortages.

A gauge of builder sentiment decreased for a third month to 75 from a July reading of 80, the largest drop since April 2020, National Association of Home Builders/Wells Fargo data showed Tuesday. The median forecast in a Bloomberg survey of economists called for no change in the index from the month before.