Tariff proposals lowered homebuilder optimism in February as worries about import taxes added pressure꧟ to a housing market already struggling with unaffordability.

A closely watched survey of the home building industry showed that sentiment declined five points to 42 in January, the lowest level in five months. The dip in the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) follows recent moves by President Donald Trump to propose tariffs on trading partners that could impact the price of building materials.

“While builders hold out hope for pro-development policies, particularly for regulatory reform, policy🅺 uncertainty and cost factors created a reset for 2025 expectations in the most recent HMI,” said NAHB Chairman Carl Harris, a home builder from Wichita, Kan.

Tariffs Worries Add to Builders’ Cost Concerns

Sales expectations for the next six months fell 13 points to their lowest levels since December 2ꦗ023, while home builders also experienced declines in current sale conditions and prospective buyer traffic, the survey showed. 

“With 32% of appliances and 30% of softwood lumber coming from international trade, uncertainty over the scale and scope of t🅷ariffs has builders further concerned about costs,” said NAHB Chief Economist Robert🐠 Dietz. 

While Trump paused the blanket tariffs on the U.S.’s North American neighbors, he announced a 澳洲幸运5官方开奖结果体彩网:25% tariff on aluminum and steel, which housing officials have also said could elevate building costs. The tariffs threaten to add to rising 澳洲幸运5官方开奖结果体彩网:costs in the housing market that have made it more unaffordable for home buyers, including 澳洲幸运5官方开奖结果体彩网:elevated mortgage rates and 澳洲幸运5官方开奖结果体彩网:rising home prices.