The NAHB plans to submit a letter to the White House to urge “immediate action” to address issues that threaten to derail the current housing and economic expansion. The association noted the unexpectedly quick increase in interest rates, rising home prices and rents, and escalating lumber and material costs have significantly decreased affordability conditions, particularly for entry-level buyers and renters.
In the letter, the NAHB notes that single-family builder future sales expectations decreased in March, falling to their lowest level since June 2020. Additionally, mortgage interest rates have increased more than 1.9 percentage points since the start of the year and currently stand at 5%, the highest level in more than a decade, according to Freddie Mac.
Affordability is also being impacted by the volatility in lumber prices, which has caused the cost of a typical single-family home to increase by more than $18,600 since August 2021, according to the NAHB. The NAHB says tariffs on Canadian lumber shipments into the United States are fueling price volatility and acting as a tax on buyers.
The association’s letter asks the White House to suspend tariffs on Canadian lumber imports to boost domestic affordability. The letter also calls for regulatory reform, as the NAHB says reducing regulations that account for 25% of the price of building a single-family home and more than 30% of the cost of a typical multifamily development will provide more homeownership and rental housing opportunities.
The NAHB is collecting signatures for the letter, which will be sent to the White House April 22.
