The National Association of Home Builders (NAHB) has released three recent reports that illustrate a generally positive environment for the housing market, starts and remodeling, though two of the three showed some signs of stagnation.

The NAHB/Wells Fargo Housing Market Index (HMI), updated on July 18, tracks builder confidence in the market for newly-built single-family homes. The latest update places the HMI at a level of 64, which is the lowest number since November 2016. However, the NAHB describes the components of the HMI as still in “solid” territory. If there is one thing holding it back, it is material prices.

“Our members are telling us they are growing increasingly concerned over rising material prices, particularly lumber,” said Granger MacDonald, NAHB chairman. “This is hurting housing affordability even as consumer interest in the new-home market remains strong.”

The news is much more positive for housing starts nationwide, as they rose 8.3 percent in June, according to the U.S. Department of Housing and Urban Development and the Commerce Department. Single-family starts rose 6.3 percent in June to its second-highest rate of the year, and multifamily starts rose 13.3 percent.

This jump in starts was most prominent in the Northeast, where starts rose 83.7 percent. The Midwest saw a jump of 22 percent, the West rose just 1.6 percent, and starts actually decreased in the South by 3.8 percent.

“We are seeing housing production return to trend after a softer reading last month,” said Robert Dietz, chief economist, NAHB. “The gradual growth in single-family starts in 2017 is in line with our forecast, and we should see this sector continue to strengthen throughout the year as consumers show interest in the housing market.”

Meanwhile, the NAHB’s Remodeling Market Index (RMI) also dropped slightly in July, though it still remains in generally positive territory. The RMI’s second-quarter reading of 55 is a three-point drop from the first quarter, but the index has seen 17 consecutive quarters with a value above 50. This means that remodelers have continuously reported that market activity is higher in the current quarter than the previous quarter.

The RMI’s findings show that remodelers have many of the same concerns seen in the HMI. Material prices are a very real issue, and finding affordable, skilled labor is still a significant challenge.

“The RMI has remained above 50 for the past four years, indicating strong demand for remodeling work,” Dietz said. “However, the challenges posed by rising labor and material costs will constrain remodelers’ ability to increase production at a faster pace.”

According to the NAHB, these issues have held back what could be a truly surging market. Dan Bawden, NAHB Remodelers chairman, said that remodelers have been forced to turn projects down because they do not have the labor to keep up with demand.

This is one of many problems that must be solved if the housing market is going to take off and become more than merely “solid.”