Will Tariffs Make Homes More Expensive? The Real Estate Industry Reacts

If you’re buying a home, building, or investing, you may feel anxious about the recent tariff debates. If the cost of building materials goes up it will affect the housing market. So the new tariffs on Canada and Mexico make many of us ask: Will home prices increase even more?

The good news? A 30-day pause on the proposed 25% tariffs has given the industry some breathing room. But while this delay offers temporary relief, uncertainty still looms. Could future tariffs make it even harder to build and buy homes? Here’s how the building and real estate sectors are reacting—and what it means for you.

Tariff Pause: A Welcome Relief for Builders and Homebuyers

The proposed tariffs would significantly increase the cost of key building materials. This includes Canadian softwood lumber and Mexican gypsum, which builders use for drywall. These tariffs could raise construction costs. This would make the housing affordability crisis even worse.

Over 70% of some building materials come from Canada and Mexico, says the National Association of Home Builders (NAHB). Supply chains are already under pressure. If costs increase, homebuyers are likely to pay more.

Why Even a Tariff Pause Brings Uncertainty

The pause on tariffs brings some relief. Still, the potential for future tariffs can shake up supply chains. However it still might cause the price increase of building materials as some builders started to stockpile supplies to prepare for possible tariffs.

This uncertainty could affect the housing inventory. It could make new home construction costs go higher and slow down development projects.

So what’s Next for the Housing Market?

For now, builders and developers are cautiously optimistic but remain on high alert. The leaders of the industry are asking policymakers keep in mind how tariffs would impact the housing costs and the economy over time.

If you’re thinking about buying a home, or you are a builder or a developer, keep an eye on these changes. Make smarter investment decisions in the months ahead.

Final Thoughts

The pause on the implementation of these tariffs gives relief for now. However, the housing and construction industries are still at risk.

Sources:

• Tariff pause with Canada, Mexico welcomed by builders
• Homebuilders ask Trump for tariff exemptions on building materials
• NAHB urges building material tariff exemption 

About Judit and Isaac Crace

Judit and Isaac Crace are a mother-and-son real estate team with Top Idaho Real Estate, a locally owned brokerage based in Nampa, Idaho. Judit has more than 20 years of real estate experience and has served the Treasure Valley since 2004. Isaac is a Nampa native and third-generation Nampa REALTOR® with lifelong ties to the community and firsthand knowledge of the area. Together, they help buyers and sellers throughout Nampa and the Treasure Valley with experienced, hands-on real estate guidance.

Email Judit and Isaac