New data shows slumping home-building season impacting market

The home-building season of 2025 is off to a rocky start as new data reveals a significant slump in housing starts and builder earnings, signaling a softening market for new homes. The decline in housing starts suggests potential challenges for builders and home buyers due to faltering economic confidence and rising interest rates. This downturn could impact builders’ bottom lines, as earnings in the sector are poised to weaken further. Economists are closely observing these trends, as they may indicate broader economic implications while affecting the supply of new homes. Home builders are grappling with increased material costs and supply chain disruptions, which amplify the sector’s struggles. This hard start to the home-building season also poses challenges to potential buyers facing high costs and limited inventory. As the season progresses, market analysts are keenly watching to see if these trends continue or if relief is on the horizon, which is crucial for both the economy and those looking to invest in new homes.

WSJ

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