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.
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