![\"\"](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2018\/06\/Downtown-Chicago.jpg\")
<\/a><\/p>\nPhoto: Robert Clark<\/em><\/p>\n Recent increases in tariffs on Canadian lumber have caused the confidence of US homebuilders to slip amid growing affordability concerns.<\/p>\n Rising material costs \u2014 lumber, in particular \u2014 are making it exceptionally difficult for builders to provide homes at competitive prices, according to a new report released today by the National Association of Homebuilders (NAHB).<\/p>\n \u201cBuilders do need access to lumber and other construction materials at reasonable costs in order to provide homes at competitive price points, particularly for the entry-level market where inventory is most needed,\u201d NAHB Chief Economist Robert Dietz says in the digital release.<\/p>\n Homebuilder sentiment slipped two percentage points on the NAHB Housing Market Index (HMI) to a reading of 68 in June, with mounting material costs and the \u201csharp\u201d increase in lumber costs the chief causes for the decline.<\/p>\n Record-high lumber prices have added nearly $9,000 to the price of a new single-family home since January 2017.<\/p>\n But NAHB went on to say that improved economic growth, continued job creation and solid housing demand should spur additional single-family construction in the months ahead.<\/p>\n The HMI is derived from a monthly survey conducted by NAHB that gauges homebuilder perceptions of current single-family homes sales and future expectations, as well as buyer foot traffic.<\/p>\n Any score over 50 indicates that builders view conditions as \u201cgood\u201d as opposed to \u201cpoor.”<\/p>\n Each of the three components that comprise the HMI slipped one point in June.<\/p>\n While buyer traffic hovers on the line between \u201cgood\u201d and \u201cpoor,\u201d builders\u2019 overall sentiment of the housing industry remains quite strong.<\/p>\n \u201cBuilders are optimistic about housing market conditions as consumer demand continues to grow,\u201d NAHB Chairman Randy Noel says in the digital release.<\/p>\n