Homebuilders Feel Chill of Tariffs in February | Global News Avenue

The tariff proposal lowered optimism among homebuilders in February over fears import taxes added pressure to the already unbearable housing market.

A closely watched survey of the housing construction industry showed sentiment fell by 5 points in January to 42 points, the lowest level in five months. National Association of Housing Builders (NAHB)/Wells Fargo Housing Market Index (HMI) declines after President Donald Trump’s recent move to raise tariffs on trading partners Impacts the price of building materials.

NAHB Chairman Carl Harris said: “Builders have hope in supporting development policies, especially in regulatory reforms, but policy uncertainty and cost factors have brought expectations in recent HMIs to 2025. Reset.”

Tariff concerns increase cost issues for builders

The survey showed sales expectations fell by 13 points in the next six months to their lowest levels since December 2023, while home builders also saw a decline in current sales conditions and potential buyer transportation.

“32% of appliances and 30% of cork wood come from international trade, and uncertainty about the size and scope of tariffs has brought builders further attention to costs,” said Robert Dietz, chief economist at NAHB.

When Trump suspended blanket tariffs in U.S. North American neighbors, he announced Aluminum and steel tariffs of 25%, Which housing officials also said it could increase construction costs. Tariffs could increase costs in the housing market, which makes it more burden on home buyers, including Mortgage interest rates rise and House prices rise.