The President’s policies have created a “perfect storm” that is driving up costs for the housing industry, says the Federal Reserve Chairman.
“Federal Reserve Chairman Jerome Powell echoed what most in the homebuilding industry have been complaining about all year. While the nation sinks into a severe housing shortage, homebuilders are struggling against high costs for labor and materials.
In response to questioning from Sen. Tina Smith, D-Minn., Powell said, ‘What we hear from the homebuilders is that it’s a series of factors that are holding them back and challenging affordability.’
‘Now you have a shortage of skilled labor, so it’s hard to get people on the job, electricians, plumbers, carpenters and other people. No matter what you pay them, just finding people to do that work,’ said Powell.
Smith responded, ‘Would you say our immigration policy might have something to do with that?’
Powell replied, ‘That’s what we hear from homebuilders. That’s part of it for sure.’
Then he added, ‘Material costs too have gone up, and some of that is tariffs for sure. The homebuilders feel almost like they’ve been hit by a perfect storm here.’
Builders, especially in the south and west, rely on immigrant labor, much of it from Mexico. The Trump administration’s tough stance on immigration has hit construction employers hard.”
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