Housing starts have reached an annual rate of 1,501,000, marking an 11.2% increase from January yet a 2.9% decline year-over-year. Rising concerns over Trump’s tariffs are causing homebuilders to hesitate on new projects despite the new home sector being a bright point in a tight housing market. Completions have dropped year-on-year, with a mixed regional performance affecting these trends. Builder confidence has also diminished, attributed to the looming tariffs on imports like steel and aluminum, which could further disrupt the housing market.
Housing starts have recently shown a slight improvement, but ongoing tariff threats are causing hesitation among homebuilders, impacting new construction and permitting.
The mix of a tight housing market and varying regional performance contributes to concerns over the future of homebuilding activity as tariffs loom.
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