And WE ARE BACK! Market Monday is all things focused on Real Estate. Below are my interpretations of various articles across different platforms. So basically, I’m gathering the temperature of the market for you.
Tuesday is Tariff Day for Homebuilders
The new administration has proposed various tariffs. Homebuilders could be facing new challenges. For example, increased Material Costs such as Steel and Lumber leading to higher prices. These sharp increases can impact the cost of construction projects and negatively impact homebuilders profit margins. As tariff are imposed it leading to uncertainty in pricing, and major supply chain disruptions.
Inflation Is Rising. What Will That Mean for Trump’s Tariffs?
Inflation, Inflation, and Inflation is rising. This is a growing concern due to the potential tariffs that can hinder economic growth. As mentioned earlier, Homebuilders will be facing material cost increases, and in this case, many households will be facing affordability issues due to significant price increases on essential goods.
If Trump guts NOAA, your home insurance premiums could spike
Source: Fast Company
National Oceanic and Atmospheric Administration, known as NOAA plays a crucial role in forecasting and data collection which also uncover the impacts of climate change. NOAA is facing a massive job cut which has a direct impact on industries that rely on its data. One unique factor is Insurance. It is possible that there will be increases in insurance premiums, with some carriers withdrawing coverage in high-risk areas altogether. In 2024 alone, climate-related disasters caused over $192 billion dollars in damages. NOAA’s data is utilize by Insurers to develop models stimulations to inform premiums, underwriting, and claims processes. It’s important to follow-up with your insurance carriers about any coverage changes that may take place.
Habitat Urges Lawmakers to Build Up Affordable Housing Solutions
Advocates had gathered in Washington, D.C. for Habitat for Humanity's conference, emphasizing the urgent need for affordable housing solutions. Their product focus was on the construction of starter homes to assist low- and moderate-income families. There are ongoing efforts like the “Cost of Home campaign”, which raised awareness about housing affordability across 400 communities. Habitat for Humanity also launched the “Homeownership Supply Accelerator Initiative” which aims to direct funding to developers to enhance affordable housing supply, despite facing legislative challenges. It great time to be advocate in your community and assist in leading the change.
Delayed Brooklyn Village project in Charlotte to start with 250 affordable housing units
On the topic of affordable housing. Developer, Donahue Peebles III, executive vice president of The Peebles Corporation, is leading the way with The Brooklyn Village Project in Charlotte, NC. It aims to revitalize the historic Brooklyn neighborhood by developing 250 affordable housing units, specifically targeting families earning between 30% to 80% of the area median income. The construction for the first phase is now slated for 2026, with anticipated completion in 2027.
Conclusion
In conclusion, the complex landscape for homebuilders faces uncertainty due to proposed tariffs by the administration. The increasing inflation threatens affordability and potential disruptions in insurance as NOAA faces job cuts. The urgency for affordable housing solutions, advocacy is needed to strengthen community efforts and supportive legislation. As economic pressures mount, lawmakers, builders, and communities must collaborate on innovative solutions that can alleviate the strain on homebuilders and provide accessible housing for families in need. By remaining engaged and proactive, we can navigate these challenges and work towards a more stable and affordable housing market for all.
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Resource Articles:
Article Inflation Is Rising. What Will That Mean for Trump’s Tariffs? - The New York Times
Article If Trump guts NOAA, your home insurance premiums could spike - Fast Company
Article Habitat Urges Lawmakers to Build Up Affordable Housing Solutions | Builder Magazine
Article Brooklyn Village project to prioritize affordable housing | Charlotte Observer
