As the cost of imported goods is projected to rise, domestic products and construction face increasing pressure. CoreLogic warns of potential lumber shortages akin to 2021 if builders opt for more U.S.-sourced materials, which could generate supply bottlenecks and inflated costs. The average cost to build a new home is $422,000, with potential tariffs adding $17,000-$22,000 more. This pricing escalates housing challenges, pushing many homebuyers into a cost-burdened category, highlighting the urgent need for affordable single-family housing options in the U.S.
A rush on U.S. materials could lead to supply chain bottlenecks resulting in short-term price hikes, further disrupting efforts to close the critical gap in U.S. housing supply.
The economics are now upside down, making it increasingly difficult to build homes profitably and pushing potential homeowners into the cost-burdened category.
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