As we celebrate Careers in Construction Month, it is a great opportunity to recognize the people who make our industry possible and the tremendous career opportunities residential construction continues to provide. It is also a reminder of why staying informed, connected and engaged matters. Our industry is constantly changing, and part of the value of our HBA network is having access to information and resources that help us understand what those changes could mean for our businesses.
As your Area 10 State Representative, one of the things I appreciate about our connection to NAHB is the economic insight it provides. One issue that continues to have a significant impact on housing is the interest-rate environment and the pressure it is putting on builders, buyers and affordability.
In September, the Federal Reserve raised the federal funds rate by 25 basis points to a target range of 3.75% to 4.00%, its first increase in three years. According to NAHB, the decision reflected continued concerns about inflation, with energy prices, geopolitical developments and trade issues contributing to uncertainty.
For housing, the bigger question is what that means for our industry.
One important distinction is that the federal funds rate does not directly determine mortgage rates. However, higher interest rates affect housing in several ways. NAHB reports that higher short-term rates increase financing costs for builder acquisition, development and construction loans. At the same time, elevated mortgage rates affect what buyers can afford and how much home their monthly payment can support.
That puts pressure on both sides of the housing equation. Builders are navigating the cost of land, labor, materials, regulations, development and financing, while buyers are facing higher borrowing costs. When those pressures come together, it becomes increasingly difficult to deliver homes at price points families can afford.
We are also watching closely to see what comes next. NAHB continues to monitor inflation, mortgage rates, the bond market and Federal Reserve policy, but the direction of rates will ultimately depend on how the economy develops. For our members, the important point is less about predicting the Fed’s next move and more about understanding that interest rates and financing costs are likely to remain an important part of the housing conversation.
There are challenges in the current market, but there is also reason to keep the bigger picture in perspective. People still need housing, communities continue to grow, and our industry continues to adapt. That makes the work being done at the local, state and national levels to address housing affordability, workforce needs, regulations and the cost of construction even more important.
These are also the kinds of issues that demonstrate the value of our connection to HBASE and NAHB. We have people at the national level studying the economy, advocating for housing and providing information and resources that we can bring back to our members as they make decisions for their businesses.
Another way members can take advantage of that national connection is through the 2027 NAHB International Builders’ Show® (IBS), February 2–4 in Las Vegas. Registration is open, and IBS brings together residential construction professionals from across the country for new products, education, demonstrations, ideas and industry connections. The Expo+Education Pass includes more than 120 education sessions along with access to both the IBS and Kitchen & Bath Industry Show exhibit floors.
Whether you are a builder, remodeler, supplier, designer or another professional serving residential construction, IBS is an opportunity to step outside your day-to-day business, learn what others across the country are seeing, explore what is coming next and bring new ideas and connections back home to the Sioux Empire.
There will always be economic conditions and challenges for our industry to navigate. As we celebrate Careers in Construction Month, it is a good reminder that our greatest strength continues to be our people. By investing in our workforce, staying informed and taking advantage of the resources and relationships available through our association, we can continue moving our industry forward.
Jordan Hefner
Area 10 State Representative
