Demand for single-family housing will remain strong in 2018, mirroring 2017. Positive job gains and attractive interest rates continue to bring buyers to the market. Consumer confidence remains high as employment growth remains positive, interest rates continue to be attractive, and consumers continue to improve their balance sheets. On the other hand, supply is struggling to keep up with demand, while builders struggle to produce enough homes to meet market demand. Moreover, where demand is strongest—for starter and lower-price homes—supply is weak and pricing pressure strong. It is difficult for builders to produce these homes because building costs prohibit it.