Elevated interest rates, tariffs, and labor shortages due to President Donald Trump’s immigration crackdown have left many would-be buyers on the sidelines.

For Canadian lumber — which is most of the lumber in the U.S. — it’s on top of an existing 35% tariff.

The Texas suburbs have been a major driver of home building, but new housing construction in the state has slowed and single-family housing permits are down 8%.

A Realtor.com report finds that both the price and square footage of newly built homes are decreasing in about a quarter of the 100 largest metropolitan areas.

A survey from the National Association of Home Builders found contractors’ expectations fell to their lowest level in more than a year.

Tariffs and higher mortgage interest rates are at the top of the list.

Multifamily housing was a big part of the increase. But there is still high demand for single-family homes.

The National Association of Homebuilders reported its third straight month of improvement in its homebuilder confidence index, even though permits for new housing construction were down nearly 8% year over year.

They’re expecting to pay less interest on loans to build houses — and their clients are anticipating lower mortgage rates.

When you take mortgage rates, housing prices and incomes into account, homes are 44% less affordable than they were two years ago.