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Overall homes are getting more expensive and more are outside the budget for families earning the median income in the U.S. NAHB says housing affordability is at a 10-year low in the second quarter of 2018.

“Tight inventory conditions and rising construction costs are factors that are holding back housing and putting upward pressure on home prices,” said NAHB Chairman Randy Noel, in a statement earlier this month. “Meanwhile, tariffs on Canadian lumber imports into the U.S. are further eroding housing affordability. Builders are struggling to manage these costs to ensure pricing does not outpace expected gains in wage growth.”

President Donald Trump tweeted Wednesday that tariffs are leading to \"great new trade deals.\" He has previously announced that the U.S. will work with the European Union to relieve tariffs on steel and aluminum but has not said that he will remove the tariffs on Canadian lumber or reach a deal on the North American Free Trade Agreement.

Our Country was built on Tariffs, and Tariffs are now leading us to great new Trade Deals - as opposed to the horrible and unfair Trade Deals that I inherited as your President. Other Countries should not be allowed to come in and steal the wealth of our great U.S.A. No longer!

— Donald J. Trump (@realDonaldTrump) August 15, 2018

But tariffs aren't the only thing driving up the price of buying a new home.

Several cities in California already have some of the least affordable housing markets in the country, according to NAHB and the National Association of Realtors. Higher mortgage rates, the availability of labor, and a more competitive market in larger markets could also drive up the costs for homeowners or developers looking to buy or build new homes.

\"PHOTO:
Josh Edelson/AFP/Getty Images
PHOTO: A statue of the Buddha is seen at a burned home near Clearlake Oaks, California, Aug. 7, 2018. The raging Mendocino Complex fire comprising twin blazes in the western state's north has now ravaged more than 290,000 acres.
>

Lawrence Yun, chief economist for the National Association of Realtors, said economic growth, low unemployment, and a large population of young people should be driving home sales but that the lack of new homes are driving prices higher.

\"The unaffordable conditions in many of the largest metro areas – especially in the West – continues to be a growing concern for many middle-class households aspiring to buy a home,” Yun said of the most recent home sales numbers. “Homebuilders, facing higher costs and labor shortages, are simply not producing enough affordable homes to satisfy demand.\"

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