US housing starts are at an eight-month low. Here’s why they may drop further 

U.S. single-family homebuilding starts dropped to an eight-month low in March, Reuters reports. 

Industry experts warn that figures could decline further as tariffs on imported materials raise costs and offset declining mortgage rates.

Single-family housing starts, which account for the bulk of homebuilding, dropped 14.2% to a seasonally adjusted annual rate of 940,000 units last month, the lowest level since July, the Commerce Department’s Census Bureau said on Thursday.

A National Association of Home Builders survey released Wednesday shows sentiment among single-family homebuilders remained depressed in April. The NAHB says the impact of import duties was already being felt with “the majority of builders reporting cost increases on building materials due to tariffs.”

Suppliers have raised their prices by 6.3% on average, with builders estimating tariffs to increase costs some $10,900 per home. These increased costs overshadow a recent moderation in mortgage rates, driven by concerns over the economy’s outlook.

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