(Bloomberg) -- The U.S. housing shortage has the attention of Federal Reserve Chairman Jerome Powell.
Homebuilders are being held back by a “series of factors,” including higher materials costs, a skilled-labor shortage and President Donald Trump's immigration and tariffs policies, Powell said during a Senate Banking Committee hearing Thursday.
“What we hear from the homebuilders is that it's a series of factors that are really holding them back and driving and challenging affordability,” Powell said in response to a question by Democratic Senator Tina Smith of Minnesota.
Powell said that tougher immigration policies may be in part to blame for the difficulty in finding workers, and tariffs also drive up costs.
“Material costs too have gone up, and some of that is tariffs, for sure,” he said. “The homebuilders feel almost like they've been hit by a perfect storm.”
To contact the reporters on this story: Prashant Gopal in Boston at pgopal2@bloomberg.net;Reade Pickert in Washington at epickert@bloomberg.net
To contact the editors responsible for this story: Debarati Roy at droy5@bloomberg.net, Christine Maurus
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