Overview

• Builders report that tariffs have added approximately $11,000 to the cost of constructing a typical new home, further straining affordability.
• The NAHB/Wells Fargo Housing Market Index for April 2025 remains below 50, signaling ongoing pessimism among home builders about market conditions.
• Uncertainty surrounding Trump’s trade and immigration policies has led many builders to delay projects and reassess pricing strategies.
• Labor shortages, exacerbated by immigration crackdowns, are compounding challenges for the construction industry during the critical spring housing season.
• To counter rising costs and weak demand, 29% of builders have cut home prices, while 61% are offering sales incentives to attract buyers.