PUBLISHED BY THE EL PASO ASSOCIATION OF BUILDERS: NATIONAL, STATE AND LOCAL HOME BUILDING INDUSTRY NEWS

The uncertain timing and scale of tariffs, Index( HMI). A special question for the report. Softwood lumber prices were 11.7 % combined with the last legs of the fight March HMI revealed that builders estimate higher compared to one year ago, with against inflation, have rattled financial the recent tariff actions will have an average tariffs threatening additional cost increases. markets. Equity markets are in correction cost impact of $ 9,200 per home. Uncertainty Such cost increases would make the territory as investors react to a flurry of on policy is also having a negative impact current housing affordability situation worse. public finance proposals, including the on home buyers and development

New NAHB analysis indicates that 100.6 largest proposed tariff hikes since World decisions. However, builders have long-run million households are priced out of the War II. However, improved clarity is on the faith in the market, as the component market, even before accounting for further way, as President Trump indicated that measuring sales expectations in the next six increases in home prices or interest rates. A details concerning reciprocal tariffs will be months held steady at 47.

$ 1,000 increase in the median price of new announced on April 2.

For the overall economy, progress on homes would price an additional 115,593 Moreover, efforts to extend the 2017 tax inflation remains limited. Inflation slowed to households out of the market. cuts are well underway on Capitol Hill, and a three-month low in February, with

Cost increases also affect the remodeling the administration has made moves to decreases for airfares and gasoline partially market, which NAHB forecasts should reform burdensome regulatory rules, offsetting shelter increases. Despite the otherwise experience significant growth in including FHA-financing related energy code easing, the report does not capture the years ahead. In fact, new NAHB requirements and the WOTUS rule. These upcoming tariff impacts. Meanwhile, housing analysis finds that in 2023, nearly 6.45 are positive developments for the housing drove nearly half of February’ s inflation million homes, around 5 % of U. S housing outlook. increase and remains higher than the 2019 stock, were classified as inadequate As a result of these crosswinds, bond pre-pandemic average of 3.4 %. However, according to the American Housing Survey. markets are in a holding pattern. The 30- housing continues to show signs of cooling Of these, 1.65 million homes were classified year fixed-rate mortgage remains near 6.6 %— the year-over-year change in the shelter as severely inadequate, showing significant and the Federal Reserve held its policy rate index remained below 5 % for the sixth concerns over housing quality. While this after its March meeting, as expected. straight month and posted its lowest annual reveals ongoing issues in nation’ s housing The policy uncertainty is having an impact gain since December 2021. conditions, it signals probable market growth on the residential construction sector. Progress on housing inflation is directly for remodeling and home improvements in Builder confidence in the market for newly tied to construction costs. Prices for inputs the year ahead.-NAHB built single-family homes was 39 in March, to new residential construction— excluding

SEE RELATED ARTICLE PAGE 6 down three points from February and the capital investment, labor, and imports— NAHB Chief Economist Robert Dietz provided this lowest level in seven months, according to were up 0.5 % in February, according to the economic and housing industry overview in the biweekly newsletter Eye On the Economy the NAHB / Wells Fargo Housing Market most recent Producer Price Index( PPI)

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