Homebuilder sentiment nears pandemic low as economic uncertainty plagues consumers
www.cnbc.com
Sentiment among the nation's homebuilders fell due to stubbornly higher mortgage rates, tariff concerns and economic uncertainty among consumers.

Key Points

Builder sentiment in June dropped 2 points from May to 32 on the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). Anything below 50 is considered negative.

Analysts had been expecting a slight improvement, given recent tariff negotiations and pullbacks by the Trump administration.

This index has only seen a lower reading than June’s level twice since 2012.

  • N0t_5ure@lemmy.world
    14·
    5 days ago

    Not surprising, given:

    1. The housing market cycle peaked in 2022, has been slowly trending down since, and the pace of decline is picking up. Inventory is way up and prices are down.

    2. Tariffs have greatly increased the cost of inputs used in making homes, increasing the price of lumber, steel, copper, appliances, etc., etc.

    3. Deportation of the labor force greatly increases the cost of labor to build the homes. After agriculture, the largest industry using immigrant labor is construction. Kicking a major portion of the construction labor force out of the country is guaranteed to drive up the price of the labor that remains.