The ongoing shifts in trade policy under Trump's administration have complicated the landscape for homebuilders, particularly regarding tariffs on essential construction materials. Recently, a much-anticipated delay on a 25% duty for goods from Canada and Mexico was granted, providing temporary relief. However, this is overshadowed by impending global tariffs and the already established tariffs on Chinese imports. The National Association of Home Builders warns that if tariffs proceed, costs will rise significantly, leading to higher home prices and increased borrowing costs, drastically affecting the industry and buyers alike.
The uncertainty from tariffs is prompting homebuilders to prepare for a significant increase in construction costs, estimating up to $10,000 more for new homes.
A 25% tariff increase on imports from Canada and Mexico could result in an overall rate of nearly 60%, significantly impacting building material costs.
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