New Housing For-Sale Builders NAICS 236117

Nov 24, 2025 - Tariffs, Immigration Enforcement Weigh on Builders

• President Trump’s tariffs and immigration crackdown are straining US homebuilders, raising costs and worsening labor shortages, according to The New York Times. Builders face higher prices for steel, copper, lumber, and other materials, with tariffs adding up to $10,900 to the cost of a typical home, according to the National Association of Home Builders. Immigration enforcement has made workers fearful, delaying projects and shrinking crews. Construction added only 6,000 jobs through August, despite an Associated Builders and Contractors projection that nearly 500,000 more workers will be needed in 2026. Builders are slowing activity, cutting budgets, and bracing for slower growth as high mortgage rates and weak demand are dragging down sales. Economists warn that even if interest rates fall, labor and material pressures could intensify.
• America’s largest homebuilders are struggling to sell new homes despite offering 4% mortgages and deep discounts, according to The Wall Street Journal. D.R. Horton and Lennar have slashed prices and added incentives, but demand remains weak, pushing unsold inventory to levels last seen in 2009. Builders are slowing construction, with D.R. Horton cutting starts by 21% year over year for the three-month period through September. Regional gluts in Texas, Florida, Southern California, and Washington, DC reflect rising resale competition, fewer foreign buyers, and economic uncertainty. Investor activity is at a 15-year low, with institutional buyers demanding steep discounts that builders won’t meet. New homes, often located in less desirable areas and targeted at first-time buyers, are more challenging to sell.

• The National Association of Realtors' 2025 Profile of Home Buyers and Sellers reveals a sharp decline in first-time home buyers, now just 21% of home purchases, with a median age of 40. This shift reflects deep challenges of affordability and a market increasingly dominated by older, equity-rich repeat buyers. Sellers are staying in their homes longer, 11 years on average, further limiting inventory turnover. Buyers with cash and assets are driving transactions, while younger would-be purchasers struggle to enter the market, delaying wealth-building and reducing lifetime mobility. Policymakers are urged to address supply constraints by unlocking inventory, streamlining zoning regulations, and facilitating faster and more affordable construction. The data underscores a bifurcated market and signals long-term shifts in buyer demographics, transaction volume, and housing wealth distribution.
• Rayonier and PotlatchDeltic plan to merge in an all-stock deal valued at $7.1 billion, creating the second-largest US timberland owner with 4.2 million acres, according to The Wall Street Journal. The combined company’s expanded footprint and PotlatchDeltic’s sawmills in Arkansas, Idaho, Michigan, and Minnesota are expected to strengthen domestic lumber supply, a critical factor for the homebuilding industry amid volatile prices. With tariffs on Canadian softwood lumber raising costs and curtailments tightening supply, US timberland owners stand to benefit, potentially stabilizing access to raw materials for builders. Nearly a million acres in the Northwest will help meet demand for private timber, while Southern holdings provide cost-efficient lumber production despite oversupply. The merger underscores consolidation in forestry and signals stronger supply chains for homebuilders navigating trade disputes, fluctuating markets, and ongoing pressure in housing and construction.