Materials Remain Top Challenge for Builders, but New Issues Are Becoming Increasingly Problematic

Economics
Published
HMI Jan 2023 Special Graph

The price and availability of building materials again topped the list of problems builders faced last year, but interest rates, general inflation and negative media moved considerably up the list.

According to responses on the January 2023 survey for the NAHB/Wells Fargo Housing Market Index (HMI), building material prices were the most significant issue for builders in 2022 (cited by 96% of builders), followed by availability and timing to obtain building materials (cited by 86% of builders). Both problems topped the list in 2021 as well.

Cost and availability of labor has also been a relatively widespread problem, reported as a significant issue by 82% of builders in 2021 and 85% in 2022 — which is not surprising, given the large number of unfilled job openings in the construction industry. 

However, some problems became significantly more widespread in 2022. High interest rates were a problem for only 2% of builders in 2021 but affected 66% of builders in 2022. Rising inflation in the U.S. economy was a significant problem for 85% of builders in 2022, compared to 63% in 2021. And negative media reports making buyers cautious also affected 55% of builders in 2022, compared to 26% in 2021.

More builders (93%) expect high interest rates to be a problem in 2023, up strongly from the 66% who said it was a problem in 2022. Moreover, both the current and expected numbers were much higher in the recent survey than at any time between 2011 and 2021.

NAHB senior economist Ashok Chaluvadi provides more insights in this Eye on Housing post.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Legal | Energy

Jul 10, 2025

NAHB Presents Oral Arguments Challenging HUD’s 2021 IECC Mandate

On July 9, the Federal District Court for the Eastern District of Texas heard oral arguments in NAHB’s challenge to the government’s final determination requiring that homes built under certain housing programs comply with the 2021 International Energy Conservation Code (IECC) and 2019 ASHRAE-90.1.

Economics

Jul 10, 2025

Remodeling Market Sentiment Dips in Second Quarter

NAHB released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the second quarter, posting a reading of 59, down four points compared to the previous quarter. While the reading of 59 is still in positive territory, this is only the second time the RMI has dipped below 60 since the survey was revised in the first quarter of 2020.

View all

Latest Economic News

Economics

Jul 09, 2025

Mortgage Applications Picked Up in June as Rates Eased

Mortgage application activity picked up in June, supported by a slight decline in interest rates. The Mortgage Bankers Association’s (MBA) Market Composite Index, which tracks mortgage application volume, rose 5.4% from May on a seasonally adjusted basis. Compared to June 2024, total applications were up 21.1%.

Economics

Jul 09, 2025

Who’s Still Working from Home in 2025? A Look at America’s Telework Trends

Remote work may no longer dominate the U.S. labor force as it did during the height of the pandemic in 2020, but it still represents a substantial share of employment today.

Economics

Jul 08, 2025

Top Ten Builder Share Rises Again in 2024

The top ten builders captured a record 44.7% of all new U.S. single-family home closings in 2024, up 2.4 percentage points from 2023 (42.3%).