Uncertainty about tariffs caused homebuilder confidence to fall in the South for the third straight month, according to the latest data from the National Association of Homebuilders.
- The NAHB/Wells Fargo Housing Market Index in the South fell to 39 in March, down from 41 in February and the lowest level since August 2024.
Breaking It Down: The South was not alone in its decline. The Northeast, which had been above the 50 threshold for the last six months, fell to 47 in March, the lowest level since August.
- The Midwest saw the biggest decline with a five-point drop to 38 and the West fell to 15-month low at 34.
Nationally, the homebuilder index declined to 39 in March, down there points from February and the lowest level since August.
- Economists had projected a slight rise to 43.
By The Numbers: The decline was thanks to a big drop in the traffic of prospective buyers which fell five points to an index of 24 in March, the lowest level since December 2023.
- The other major components were mixed as the present index fell three points to 43 while the index that measures sales in the next size months held at 9-month low at 47.
What They’re Saying: Robert Dietz, NAHB Chief Economist, said the decline is all about tariffs. “Data from the HMI March survey reveals that builders estimate a typical cost effect from recent tariff actions at $9,200 per home. Uncertainty on policy is also having a negative impact on home buyers and development decisions.”
Bottom Line: Thanks to rising prices builders have already been hesitant about building. Tariff uncertainty gave them one more reason to stay on the sidelines.
