Single-Family Home Builders NAICS 236115

Nov 10, 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 builders won’t meet. New homes, often in less desirable areas and aimed at first-time buyers, are harder to sell.

• North American construction spending on single-family homes in 2026 is expected to rise 1% after decreasing an estimated 3% in 2025, according to FMI’s fourth-quarter 2025 North American Engineering and Construction Outlook. Single-family construction will face sluggish growth as mortgage rates are expected to remain at 6%-6.5% early next year. Household incomes have not kept pace with rising median home prices, contributing to the lack of affordability. In response, builders have focused on entry-level and built-for-rent homes with fewer bells and whistles, especially in more affordable regions of the country, including the South and Midwest. Single-family construction spending is expected to improve to 2% growth in 2027, 4% in 2028, and 5% in 2029.
• On October 14, 2025, the US added 25% levies on cabinets, vanities, and unupholstered furniture imports, and 10% tariffs on wood floors, lumber, and wood, according to The New York Times. Industry watchers say the new tariffs will significantly raise construction and renovation costs for U.S. homebuilders. With duties reaching up to 50% on some items by January, builders who rely on foreign materials warn of project delays and increased uncertainty. The National Association of Home Builders estimates that 7% of materials used in new residential construction are imported. Industry leaders fear the added costs will be passed on to consumers, making homeownership and renovations more expensive while slowing new home construction, deepening the housing shortage, and offsetting any relief from falling interest rates.