NAHB says housing market is threatened to 'derail'

Concern is growing rapidly at the National Association of Home Builders (NAHB) in Washington.

The association said it plans to send a letter to the White House urging immediate action to address issues that threaten to derail current housing and economic expansion.

A quick rise in interest rates, rising home prices and rents, and escalating lumber and material costs have significantly decreased housing affordability conditions, particularly for entry-level buyers and renters. 

As single-family builder future sales expectations posted a large decline in March, falling to their lowest level since June 2020, mortgage interest rates have surged more than 1.9 points since the start of the year and currently stand 5%.

Additionally, lumber prices have raised the cost of a typical single-family home by more than $18,600 since last August, the NAHB said.

As a result, the NAHB is collecting signatures for its letter to President Biden. 

The letter asks for tariffs to be suspended on Canadian softwood lumber imports while requesting cuts to federal housing regulations. 

The NAHB is also concerned about federal housing regulations. In the letter, the NAHB said that the “burdensome regulations” account for nearly 25% of the price of building a single-family home and more than 30% of the cost of a typical multifamily development.

Read and sign the NAHB’s letter to the White House here.