President Trump implemented 25% tariffs on imports from Canada and Mexico to compel stricter border enforcement. Homebuilders warn this will lead to higher home prices due to increased costs for lumber and building materials. National Association of Homebuilders officials express concerns that such tariffs will harm housing affordability, noting that 70% of dimensional lumber used in U.S. construction comes from these countries. Despite potential benefits in border enforcement, the housing market may see rising premiums on new homes as builders pass costs onto consumers.
"This move to raise tariffs by 25% on Canadian and Mexican goods will harm housing affordability," National Association of Homebuilders Chairman Buddy Hughes tells Realtor.com.
"Rising costs due to tariffs on imports will leave builders with few options," says Realtor.com Chief Economist Danielle Hale.
"Tariffs on lumber and other building materials increase the cost of construction and discourage new development, and consumers end up paying for the tariffs in the form of higher home prices."
"The premium on new construction homes that had been shrinking in many markets according to Realtor.com data could begin to rise again..."
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