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REAL ESTATE
Tariffs Expected to Push Up Already-High Home Prices
Price increase could be 4–6 percent
U.S. home prices already are testing the bounds of affordability. A round of tariffs from the Trump administration threatens to force the costs of new homes even higher.
If the White House’s new tariffs takes effect, the cost of a new home would go up by about 5 percent, or more than $20,000 for a typical newly constructed property, according to an analysis by John Burns Research & Consulting.
Real estate data firm CoreLogic reached a similar conclusion: It predicts home construction costs will rise 4-6 percent this year as a result of the tariffs.
Meanwhile, CoreLogic says, “household fixtures, such as appliances, lighting and cabinetry, could increase in price by 10–20 percent, and potential new tariffs on Chinese steel could alter project budgets by double-digit percentages.”
President Donald Trump announced 25 percent tariffs on imports from Canada and Mexico, then put those levies on hold for at least a month. Trump also imposed a 10 percent tariff on goods imported from China. And on Super Bowl Sunday, Trump announced 25 percent tariffs on all imported steel and aluminum.
