Builder confidence for newly built single-family homes fell to 39 in March, down three points from February and the lowest level in seven months, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
NAHB attributes the drop in confidence to economic uncertainty, the threat of tariffs and elevated construction costs.
“Builders continue to face elevated building material costs that are exacerbated by tariff issues, as well as other supply-side challenges that include labor and lot shortages,” NAHB Chairman Buddy Hughes said in a statement.
“Construction firms are facing added cost pressures from tariffs,” NAHB Chief Economist Robert Dietz said in a statement. “Data from the HMI March survey reveals that builders estimate a typical cost effect from recent tariff actions at $9,200 per home. Uncertainty on policy is also having a negative impact on home buyers and development decisions.”
The HMI survey revealed 29% of builders cut home prices in March, up from 26% in February.
Index levels below 50 indicate more builders view market conditions as “poor” than “good.”
Read the full report here.
