NAHB attributes this increase to strong consumer demand for homes. As housing inventory remains low and buyers are continuing to face strong competition with one-third of homes going under contract within a week, many are becoming discouraged and have started looking for alternative options.

In Burlington, Vermont, where demand continues to remain strong and inventory is at the lowest level many agents have ever seen, many frustrated homebuyers, tired of losing homes to intense bidding wars, are turning to new builds as a way to ensure they have a place to live.

“People have nowhere to go, so they are just building, building, building, and people are buying them up” Claire Kavenaugh an eXp agent in Burlington said. “Building has become more expensive, but people are willing to pay the prices because it guarantees them a home. The reservation agreement might be a bit more than a pre-existing home, but they are paying a price similar to what they would end up paying in a bidding war, expect they know they are getting the home.”

This increased demand for new homes, compounded with continuing material and labor shortages, has caused new homes to become less affordable.

“Builders are getting increasingly concerned about affordability hurdles ahead for most buyers,” NAHB chief economist Robert Dietz said in a statement. “Building material price increases and bottlenecks persist and interest rates are expected to rise in coming months as the Fed begins to taper its purchase of U.S. Treasuries and mortgage-backed debt. Policymakers must focus on fixing the broken supply chain. This will spur more construction and help ease upward pressure on home prices.”

Regionally, there was very little change in HMI scores. The Midwest rose one point to 69, while the Northeast, South and West held steady at 72, 80 and 83, respectively.