Builders continue losing confidence in single-family homes

In October, homebuilder confidence in single-family homes dropped to its second-lowest level since 2012. According to, with interest rates passing 7%, homebuilders are becoming increasingly concerned about their ability to sell new construction single-family homes.

  • Homebuilder sentiment in the single-family home market fell to 38 in October (any number below 50 is considered negative)
  • October marks the 10th consecutive month of weakening confidence
  • Multi-family home construction is up 28.6% YoY in response to changing demand

Our take

What the market needs most right now is more inventory. Whether builders are adding more single-family properties or multi-family units, as long as supply is increasing, that’s good for the market and for future buyers. We hope to see this multi-family push continue into 2023. It creates great opportunities for all of us agents.

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