In April, construction activity for single-family homes experienced a decline, with starts down 2.1% from March and 12% from the previous year. Builders are facing a challenging environment with high interest rates, uncertainty over tariffs, and increasing construction costs, which are impacting home affordability. This decline reflects the lowest builder sentiment in over two years, with many attributing the slowdown to ongoing trade wars and the anxiety it breeds among buyers. Conversely, multifamily housing starts saw a rise, indicating a slight positive trend in that segment amidst an overall downturn in single-family construction.
The decline in single-family housing starts in April mirrors builder sentiment, as elevated interest rates, uncertainty on the tariff front, and rising construction costs are exacerbating housing affordability challenges.
The construction slowdown in April is the first indication of the effects of the current trade war on homebuilding, which subdues buyers by causing anxiety about job loss and financial situations.
Collection
[
|
...
]