President Trump's new tariff policy could raise home prices with increased construction costs and renovation materials.

What if I told you that the price of your next home could skyrocket because of a new tax on imported goods? President Trump’s proposed tariffs could raise the cost of building or renovating your home in ways you might not expect. Today, I will share how his new tariff policy can affect the housing market.

What is a tariff? In case you’re not familiar with tariffs, these are taxes on goods imported into the U.S. from other countries. When the cost of materials goes up, the seller often increases the price to cover that tax. That means if the materials needed to build or renovate a home become more expensive, home prices might increase as well.

How do tariffs impact homes? Many materials used in construction and home renovation are imported. Here’s a breakdown of the materials most affected by tariffs:

  • Lumber: A large portion of the lumber used in construction comes from Canada. If tariffs are applied, the cost of lumber could rise, making building or remodeling more expensive.
  • Gypsum: Gypsum is used in drywall and interior finishes, and it is mostly imported from China. Higher tariffs on gypsum could drive up the cost of finishing your home.
“Higher tariffs on construction materials will likely push up home prices, putting more strain on homebuyers and renovators.”
  • Steel and aluminum: These metals are used in many construction projects, from framing to siding. Tariffs on steel and aluminum would increase the price of these essential materials.
  • Appliances and home systems: Items like HVAC systems, plumbing, and electrical systems, which are necessary for most homes, could also become more expensive due to tariffs.

How much could home prices go up? Experts estimate that these tariffs could raise the price of a new home by $2,000 to $4,000 on average. While that may not seem like much in places like San Diego, it could make a significant difference in other parts of the country where home prices are lower.

As of March, negotiations are still ongoing, and we don’t know how things will turn out. If the tariffs stay in place, they could impact home prices. However, the final effects are still uncertain. If you’re in the market to buy or build a home, it’s a good idea to keep an eye out for how the changes in tariffs might affect material costs. If you need tips on navigating the San Diego real estate market, feel free to call or text me at (858) 345-9995 or email me at Sean@MySDDreamHome.com. I look forward to talking with you!