Tariffs and the Housing Market

When tariffs rise beyond what businesses can absorb, the extra costs often fall on consumers. The higher the tariff, the more likely it is that consumers will bear the burden.

If current policies remain unchanged, many common home building materials will soon face tariffs of 10% or more. These added costs will likely be reflected in higher prices for new homes. In turn, demand for existing homes—often the only alternative—will increase, driving their prices up as well. As a result, buyers across the housing market should prepare for continued, and potentially accelerated, price increases.

But the impact doesn’t stop with home prices. Financing costs could also be affected.

Housing costs are a key component in measuring inflation. If they keep rising, the Federal Reserve may respond by holding off on expected interest rate cuts—or even raising rates again—to keep inflation in check.

For those ready to make a move, now could be the best time. Locking in today’s prices and interest rates might offer long-term savings.