The US housing market had already struggled with high mortgage interest rates, low -priced housing supply for sales, and weighing a historic high housing price.
Currently, the tariffs of building materials are applying more pressure.
About 30 % of coniferous materials consumed in the United States are imported and are mainly imported from Canada. Wallboards, known as gypsum, are imported from Mexico. 25 % of the tariff President Donald Trump has claimed two major trade partners. These products are much more expensive. Mexico’s tariff was postponed for one month on Monday, but they are still on the table.
“70 % or more (coniferous materials and plaster) of two important materials that are dependent on housing builders come from Canada and Mexico,” Karl, chairman of the National Housing Construction Company. Harris writes in the release. “Customs on wood and other architectural materials will increase construction costs, prevent new development, and eventually pay tariffs in a higher housing price.”
According to the latest reading of S & P Corelogic Case-Shiller Home Price Index, housing prices have already risen 3.8 % in November compared to November since the pandemic started. The annual increase was higher than 3.6 % in October.
The duty of architectural materials can make the market even more difficult for buyers.
“I believe this can worsen the reasonable price crisis for buyers for the first time,” said Jaret Seiberg, a residential analyst of TD Cown Washington Research Group. “In terms of positive side, it may increase the pressure on parliament to establish policies to encourage more entry -level construction, including tax deduction programs.”
Future housing buyers are sold for sale at a nearby open house in Clarksberg, Maryland.
Robert Schmidt | AFP | Getty Image
The NAHB has called for the Trump administration to exempt architecture from 25 % tariffs, and is paying attention to the presidential order on the first day of the presidential position to “expand housing supply.”
In recent years, the United States has increased wood production, but 70 % ($ 8.5 billion) has been imported from the import of national materials and wood products. Since they are already 14.5 % of tariffs, Trump’s new policies will raise it to more than 39 %.
71 % of the imports of lime and plaster products are from Mexico, a total of $ 352 million. Other materials such as steel and appliances are procured from China. Trump added 10 % of tariffs to products from China on Saturday.
According to NAHB, new obligations on imports from China, Canada, and Mexico will increase construction costs from $ 3 billion to $ 4 billion if all are enabled, and have the ability to complete the construction of a construction company. It may be given.
Customs duties can make more closer margins strict and attack smaller housing builders, but large construction companies do not have immunity.
“We are all affected by only a small part of the wood coming from Canada and some materials from Mexico, which could affect the ability to buy a house in a short period of time. There is, “said Sheryl Palmer. , Home builder Taylor Morrison, a home builder based in Arizona. “In an era where some consumers are struggling to overcome higher interest rates, my heart’s hopes are short -lived.”
Builders are already in conflict with the shortage of labor for the Trump administration, which has been worsening only after a large -scale expulsion of immigrants who have not been documented. Approximately 30 % of construction workers are presumed to be immigrants, and according to the National Immigration Forum, an immigrant organization, the considerable part of these workers is not documented.
“You can operate them outside the country, but who will build a house?” Kinloch Partners CEO, BRUCE MCNEILAGE, based in Nashville, is a single -family rental home developer. Ta.
Most of the impact of tariffs lies in new housing construction, but existing markets may also feel the influence. If the cost of other consumer goods increases, all potential buyers will reduce their spare cash to save down payments.
It was also expected that interest rates would fall this year, but if inflation gets hot again due to tariffs, interest rates may rise. Both economic reality and personal emotional awareness of wealth, this hierarchy, may violently hit the future spring market.
