Building Progress The State of the Industry
9 snips
Apr 16, 2025 Robert Dietz, Chief Economist at the National Association of Home Builders, discusses the current housing industry's challenges and opportunities. He dives into the ongoing housing deficit, explaining how population shifts impact the market. Dietz sheds light on the effects of tariffs and labor shortages while highlighting the need for workforce development. He also addresses housing affordability trends and provides insights on future mortgage rates, advising builders on material cost planning and long-term strategies.
AI Snips
Chapters
Transcript
Episode notes
Housing Market Is Structurally Underbuilt
- The U.S. housing market remains fundamentally underbuilt by roughly 1.5 million residences.
- Demographic shifts concentrate growth in the Southeast, mountain states, and parts of the Midwest, boosting long-term demand.
Tariffs Raise Costs And Uncertainty
- Tariffs create uncertainty and function effectively as tax hikes that raise costs across the supply chain.
- This uncertainty is weighing on builder sentiment and short-term industry decisions.
Lumber Duties Could Multiply Costs
- Canadian softwood lumber faces an anti-dumping duty increasing from ~14.5% toward ~34% and could face additional tariffs.
- Combined duties and possible sectoral tariffs could dramatically raise lumber input costs for residential construction.