Market Spotlight: Contractors

Rapidly rising interest rates combined with ongoing home price increases and higher construction costs continue to take a toll on builder confidence and housing affordability. Builder confidence in the market for newly built single-family homes moved two points lower to 77 in April from 75 in March, according to the National Association of Home Builders/Wells Fargo Housing Market Index. This is the fourth straight month that builder sentiment has declined. However, commercial and institutional construction planning and momentum is up. The Dodge Momentum Index (DMI) moved up 6% in April to 164.8, up from 155.0 in March. The Momentum Index, issued by Dodge Construction Network, is a monthly measure of the initial report for nonresidential building projects in planning. Contractors continue to face a number of challenges in today's changing market, including a shortage of skilled labor, supply shortfalls, higher costs and tighter margins.