Single-Family Home Builders NAICS 236115

Jan 10, 2026 - Trump Aims to Block Large Investor Purchases of Single-Family Homes

• President Donald Trump said he will move to ban large institutional investors from buying single family homes, a proposal aimed at easing the nation’s severe housing shortage but one that faces legal and political hurdles, according to The Wall Street Journal. Institutional buyers own only a small share of U.S. homes overall, but they hold significant market power in cities such as Atlanta, Charlotte, Houston, and Phoenix, where investor activity has made it harder for first time buyers to compete. Critics say investor purchases have contributed to rising prices, which are up more than 50% since 2019, while supporters argue rental firms provide access to desirable neighborhoods. The proposed ban would not force investors to sell existing holdings and would likely require congressional approval, drawing pushback from industry groups and lawmakers.
• During a December webinar, Associated Builders and Contractors' chief economist, Anirban Basu, said the construction sector would experience modest growth in 2026, according to Engineering News-Record. Still, inflation and high interest rates will continue to pose significant headwinds. In a survey of webinar participants, respondents named insufficient demand as their leading concern. Mr. Basu noted it was the first time "in recent memory" when a lack of skilled workers was not among contractors' top challenges. Materials prices remain elevated, posing margin pressures for construction firms. Between February 2020 and September 2025, construction input prices increased by more than 43%, according to the U.S. Bureau of Labor Statistics. Over the same period, several inputs for single-family home builders seen significant inflation, including prepared asphalt & tar roofing/siding products (+47.2%), concrete products (+42%), plumbing fixtures and fittings (+26.6%), and softwood lumber (+10%).

• Big home builders are luring buyers with bargain mortgages, but the deals often come with hidden risks, according to The Wall Street Journal. Some firms offer rates as low as 3.99% compared with more than 6% from traditional lenders. These deals, made possible through bulk forward commitments from lenders, allow builders to offer incentives far beyond typical seller concessions. While such promotions help more people enter the single-family market, they also inflate home prices, leaving many borrowers underwater soon after purchase. According to analysis by Reverse Engineering Finance, 27% of Lennar’s FHA loans originated between 2022 and 2024 are now underwater, and 18% of D.R. Horton’s are, compared with 10% at Quicken Loans. Builders prefer rate buydowns over price cuts to protect community values. With nearly two-thirds of FHA borrowers spending over 43% of pretax income on housing, experts warn that outright price reductions would better stabilize the market.
• 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.