It might seem like we are not that affected by tariffs, but this year, they’re hitting home, literally. The U.S. housing market is being impacted in a big way. When the government raises duties through tariff increases, it increases the cost of bringing in products from other countries. New import taxes are driving up the cost of construction materials, and everything from starter homes to large developments are being severely affected. With record tariffs on steel, aluminum, lumber and electronics, builders and developers are meeting with new challenges. Builders are facing much higher expenses when purchasing their building materials and the cost is being passed along to home buyers. Investors are also feeling the effects, as the price of a single-family home has risen approximately $10k, according to The National Association of Home Builders. Even items like appliances can affect the cost of outfitting a home for sale. A 25% tariff would add an extra $150 to the cost of a $600 stove, ultimately making it a $750 stove. Whether you believe tariffs are beneficial or detrimental, they are a tax that incurs higher costs, and these tariffs will indirectly impact the housing market.
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