Top Challenges for Builders in 2024
According to the January 2024 survey for the NAHB/Wells Fargo Housing Market Index (HMI), high interest rates were a significant issue for 90% of builders in 2023, and 77% expect them to be a problem in 2024. The second most widespread problem in 2023 was rising inflation, cited by 83% of builders, with 52% expecting it to be a problem in 2024.
Concerns over the cost and availability of labor have increased significantly in recent years, rising from only 13% of builders in 2011 to its peak at 87% in 2019. Fewer builders reported this problem in 2020 (65%), but the share rose again in 2021 (82%) and 2022 (85%). The share eased slightly in 2023 to 74%, and 75% expect the cost and availability of labor to remain a significant issue in 2024.
The share of builders experiencing significant problems with building materials prices has fluctuated over the years as well, reaching as low as 33% in 2011 to a peak of 96% in 2020, 2021 and 2022. The slowdown in single-family construction in 2023 made this less of a problem for builders last year, with 63% reporting it as a significant issue. Fewer (58%) expect it to remain an issue in 2024.
Compared to the supply-side problems of materials and labor, problems attracting buyers have not been as widespread, but builders expect many of them to become more of a problem in 2024. Buyers expecting prices or interest rates to decline if they wait was a significant problem for 71% of builders in 2023, with 77% expecting it to be an issue in 2024. A majority of builders (56%) also cited negative media reports making buyers cautious as a significant issue that is expected to continue in 2024.
NAHB Senior Economist Ashok Chaluvadi provides more details in this Eye on the Economy post, as well as a download to the full survey report.
Latest from NAHBNow
Sponsored Content
Sep 18, 2026
Why Growth Breaks Builders Who Aren't Ready for It
Financing should be a strategic growth tool, not a substitute for a sound business. The right capital, aligned with the right projects and deployed at the right time, helps builders move when opportunity arrives.
Material Costs
Sep 17, 2026
House Bill Seeks Tariff Relief for Building Materials
NAHB worked with Rep. Nanette Barragán (D-Calif.) on legislation aimed at lowering housing costs by establishing a tariff exemption process for building materials. The Housing Tariff Exclusion Act (H.R. 10416) would automatically exempt many home building materials from President Trump’s current and future tariffs and give importers a process to seek exemptions for additional materials.
Latest Economic News
Economics
Sep 17, 2026
Single-Family Starts Rebound but Market Challenges Persist
Single-family housing starts rebounded in August, but production remains down 4.7% year to date as builders contend with rising construction costs, lot and labor shortages, and economic uncertainty.
Economics
Sep 16, 2026
With Inflation Uptick, Fed Hikes and Signals More to Come
The Federal Reserve raised the federal funds rate by 25 basis points at the conclusion of its September policy meeting, bringing the target range to 3.75% to 4%.
Economics
Sep 16, 2026
Builder Sentiment Falls on Higher Interest Rates and Costs
Higher mortgage rates, worsening labor shortages and rising material costs are weighing on builder sentiment.