US Homebuilder Sentiment Remains Subdued Due to Tariffs

2025-04-16 14:05 By Joana Taborda 1 min. read

The NAHB/Wells Fargo Housing Market Index in the US edged up to 40 in April 2025 from 39 in March, above forecasts of 37.

Growing economic uncertainty stemming from tariff concerns and elevated building material costs kept builder sentiment in negative territory, despite a modest bump in confidence likely due to a slight retreat in mortgage interest rates in recent weeks.

When asked about the impact of tariffs on their business, 60% of builders reported their suppliers have already increased or announced increases of material prices due to tariffs.

On average, suppliers have increased their prices by 6.3% in response to announced, enacted, or expected tariffs.

This means builders estimate a typical cost effect from recent tariffs at $10,900 per home.

The subindex gauging current sales conditions rose two points to 45.

The gauge charting traffic of prospective buyers increased one point to 25 while the component measuring sales expectations in the next six months fell four points to 43.



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