Home builders are feeling the sting of uncertain trade policies and growing economic concerns that are adding to the challenge of building enough homes to address America’s inventory shortage. Builder sentiment in the market for new homes has been slumping for months and stayed low in April, according to the National Association of Home Builders/Wells Fargo Housing Market Index. When asked about the effect of tariffs’ on their businesses, 60% of builders said their suppliers have already increased, or announced increases, on the prices of equipment and materials because of tariffs. Builders are estimating a typical cost effect of nearly $11,000 per home, given how many products from abroad will be hit by the trade war. The gloominess could make it harder for builders to ramp up construction, which many economists say is essential to tame housing costs. Experts say the country is short somewhere between 1.5 million and 4 million homes, and prices for renters and buyers have stayed high largely because there aren’t enough homes to go around. Read more in the Inquirer.
Source: Philadelphia Inquirer; 4/19/2025