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
Advocacy
Jun 10, 2025
NAHB Urges HUD Secretary to Keep and Fully Fund Key Housing ProgramsNAHB sent a letter to Housing and Urban Development (HUD) Secretary Scott Turner on June 4 underscoring the important role that HUD’s rental assistance and new construction programs play in making housing opportunities available for low-to moderate-income Americans.
Economics | Home Builders Institute
Jun 10, 2025
New Study Reveals Significant Economic Impact of Housing Industry Labor ShortageA landmark study released today from the Home Builders Institute (HBI), in collaboration with NAHB, examines the economic impact of the skilled labor shortage for the single-family home building sector. The findings indicate that the skilled labor shortage’s impact on the residential construction industry is a multibillion-dollar annual challenge that is responsible for the lost production of thousands of newly built homes.
Latest Economic News
Economics
Jun 10, 2025
House Price Appreciation by State and Metro Area: First Quarter 2025House price growth slowed in the first quarter of 2025, partly due to a decline in demand and an increase in supply. Persistent high mortgage rates and increased inventory combined to ease upward pressure on house prices. These factors signaled a cooling market, following rapid gains seen in previous years.
Economics
Jun 09, 2025
AI’s Role in Reshaping Employment: From Theory to Home Building Sector ImpactsThe rapid rise of artificial intelligence (AI), particularly machine learning and generative AI (GenAI), is reshaping industries, creating new economic opportunities, and raising critical questions about its long-term impact on jobs and economic growth.
Economics
Jun 06, 2025
U.S. Economy Added 139,000 Jobs in MayDespite ongoing economic and policy uncertainty, the labor market remains resilient, though early signs of softening are beginning to emerge. Job growth moderated in May, and employment figures for March and April were notably revised downward. The unemployment rate remained at 4.2%.