US: NAHB housing market index to decline to 66 in September - Nomura

Analysts at Nomura expect the NAHB’s housing market index of US to decline further by 1pp to 66 in September as increased concerns over supply-related constraints outweigh sustained strong demand for housing.

Key Quotes

“The August NAHB report highlighted “growing affordability concerns, stemming from rising construction costs, shortages of skilled labor and a dearth of buildable lots.” As construction costs remain high, with increased concern around tariffs, and interest rates continue to rise, we expect further moderation in home builder sentiment while remaining at an elevated level.”