With the effects of tariff-related supply costs beginning to hit contractors, the Federal Reserve Board says it is seeing a slight decrease in new construction in some regions.
That is one of the takeaways from the board’s recently published Beige Book, otherwise known as the Summary of Commentary of Current Economic Conditions.
That publication is a compilation of soundings of business conditions gathered from all twelve of the Federal Reserve Board’s regional districts, soundings that are taken from interviews with bankers, business owners, and economists, among others.
The most recent findings from the Kansas City district, which includes Colorado and northern New Mexico, shows residential home sales dipping a little between mid-October to late November, and inventories rising. At the same time, commercial real estate activity for the region posted a modest gain.
For the Dallas region, which takes in Texas and southern New Mexico, housing market activity during the same time period was soft due to rains and rising interest rates. Although the overall real estate scene in this region remains positive, there is increased trepidation about a combination of higher construction costs and rising mortgage rates.
Arizona is part of the San Francisco Federal Reserve Board District which, during the six-week reporting period, saw both real estate and construction activity expanding at a solid pace. Residential construction in this region is seeing a shift from single family to multifamily building.
The Beige Book is called that because the cover page of the report is colored beige.
By Garry Boulard
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