Cost, Tarriff Uncertainty Weighs on Market
-NAHB
The uncertain timing and scale of tariffs, combined with the last legs of the fight against inflation, have rattled financial markets. Equity markets are in correction territory as investors react to a flurry of public finance proposals, including the largest proposed tariff hikes since World War II. However, improved clarity is on the way, as President Trump indicated that details concerning reciprocal tariffs will be announced on April 2.
Moreover, efforts to extend the 2017 tax cuts are well underway on Capitol Hill, and the administration has made moves to reform burdensome regulatory rules, including FHA-financing related energy code requirements and the WOTUS rule. These are positive developments for the housing outlook.
As a result of these crosswinds, bond markets are in a holding pattern. The 30-year fixed-rate mortgage remains near 6.6% and the Federal Reserve held its policy rate after its March meeting, as expected.
EPAB President's Message
Industry Facing Affordability Issues
Here's what we can do
EPAB President -Victor Robles
As the President of the El Paso Association of Home Builders, I want to address key challenges affecting our industry today. Rising material costs, tariffs, and labor shortages are making it increasingly difficult to maintain affordability while meeting demand. Understanding these factors can help us navigate the road ahead with a proactive mindset.
Rising Material Costs and Tariffs
Builders in El Paso continue to face increasing costs for essential materials like lumber, steel, and concrete. Tariffs on imported materials have further driven up prices, making home construction more expensive. While lumber prices have stabilized compared to pandemic peaks, they remain high.
Executive Message
Privilege and Pleasure
Testifying at Capitol on behalf of industry
By Ray Adauto - Executive Vice President, EPAB
Visiting the State Capitol on short notice is exhilarating and needed. That’s how I put the most recent rip to testify at a Texas Legislative Committee hearing that saw myself and Kelly Sorenson taking on March 13. It was a fast visit with both of us glad we went but exhausted afterwards.
Testifying in support of HB23, a top priority bill from the House leadership, meant that both of us would miss our Board meeting, but it was important enough to be asked by TAB to do. HB23 is proposed legislation on third party for the entire state. While El Paso has twenty years’ experience with a third party some municipalities do not welcome third party. HB23 would allow third party in all municipalities following strict guidelines set forth by those municipalities, offering third party it is argued, helps keep costs down and improves the affordability issue in Texas. Too many cities say no to third party, or limit them, pretty much because they can, making choice difficult for the builders in those municipalities. TAB is in favor of HB23, and despite a hiccup from our own City of El Paso the Committee was gracious and asking about our experiences. This is an especially important part of the Association Fraternity, helping others to keep on building, and to help consumers with choice and affordability.
We won’t know if HB23 will get through the committee and onto calendars, but rest assured El Paso will go whenever we are asked to.
SUPPLY CHAIN OUTLOOK
The Cost of Lumber
The week-to-week framing lumber composite price increased 0.2% on March 21, 2025, rising to $486 per 1,000 board feet. Amid swelling uncertainty about tariffs, the price of softwood lumber was the highest since June 2023. Lumber prices are currently 14.9% higher than they were one year ago.
NAHB continually tracks the latest lumber prices and futures prices, and provides an overview of the behaviors within the U.S. framing lumber market. The information is sourced each week using the Random Lengths framing lumber composite price which is comprised using prices from the highest volume-producing regions of the U.S. and Canada. A summary of other wood prices, including plywood prices, is included below.
What are Tariffs?
Editors note: Tariffs are in the news and The Builders Outlook believes it is important to understand this topic, especially when it impacts housing.
Tariffs, as a tool of trade policy, present a form of tax on goods imported from another country. Tariffs reduce imports by increasing import prices and have an impact on government revenues and budget. Until 1913 and the introduction of the federal income tax, tariffs were the major source of government revenue in the U.S. Being a part of industrial policy, tariffs could increase production for local companies. Tariffs can also be used as a tool of foreign policy, by pressing trade partners to change, adjust, or introduce policies that are preferable for the country imposing the tariffs.
