The National Association of Home Builder’s monthly Housing Market Index measures how confident builders are in the market for newly built homes. When the index scores above 50, it means more builders view market conditions as good than poor. In March, the index fell three points to 39. Robert Dietz, NAHB’s chief economist, says uncertainty is behind the decline. “Construction firms are facing added cost pressures from tariffs,” Dietz said. “Data from the HMI March survey reveals that builders estimate a typical cost effect from recent tariff actions at $9,200 per home. Uncertainty on policy is also having a negative impact on home buyers and development decisions.” Despite the uncertainty, though, the component measuring builders’ expectations for the next six months held steady in March at 47. The share of builders that reported using sales incentives was also unchanged from February, as was the average price reduction, which held firm at 5 percent. (source)
