New home construction in Indiana dropped last month as home builders grapple with the increasing costs associated with tariffs.

According to a U.S. Census Bureau report, Indiana had nearly 1,500 single-family permits in June. That’s a 10 percent decrease from May and an eight percent drop from this time last year.

The 20 percent tariffs placed on imported Canadian softwood lumber contributed to increased building costs, in addition to the tariffs imposed on steel and aluminum imports.

According to an Indiana Builders Association press release, the increase in lumber costs is driving up the price of an average new single family home by more than $6,000 compared to last year.

Indiana Builders Association CEO Rick Wajda says a shortage of laborers and shipping difficulties are also adding to costs.