The US-China trade war is affecting $10 billion worth of goods used in the homebuilding industry — and the US just saw the biggest decline in supply of new homes in 6 years

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A Redfin study revealed that in the US, the supply of new homes saw the biggest annual decline in six years.

study revealed that in the US, the supply of new homes was down 1% in the second quarter of 2019, marking the biggest annual decline since the first quarter of 2013.

"With the affordability crisis that's happening right now, I think the root cause is really a lack of supply," Daryl Fairweather, Redfin's chief economist, told Business Insider. After the housing crash in the early 2000s, home builders weren't reaching the same productivity levels they were before, Fairweather explained. As a result, there are fewer homes for people to own and that, simply, limits homeownership.And it doesn't seem like the heavy burden of the trade war on the housing industry will lighten up anytime soon. Business Insider's

previously reported that even with a recession looming, President Donald Trump"appeared increasingly comfortable with prolonged trade tensions."

 

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