The prospect of tariffs has loomed over the economy since 2024. On the election trail, President Trump made tariffs a pillar of his campaign, citing their importance for the American economy and national security.
The prospects became more tangible on Liberation Day — April 2, 2025 — when the President introduced his sweeping reciprocal tariff strategy. While some tariffs have been delayed, headlines have been zeroed in on trade, tariffs, and their potential impact on various industries, including:
Manufacturing
Automobiles
Agriculture
Why it matters: While much of the attention has focused on trade-heavy industries, the housing market is not immune to tariffs.
Tariffs’ Affect on Builders and Buyers
So, what do tariffs mean for builders — and for homebuyers?
Zonda, NewHomeSource’s parent company, asked home builders across the country about tariffs in a monthly survey. The results show the industry is feeling cautious, particularly when it comes to how tariffs might affect housing costs.
Nearly 40% of builders said they are nervous about tariffs pushing housing costs higher.
More than 20% are worried higher costs could slow buyer demand.
Some builders are switching to different suppliers or experiencing cost increases already.
“Housing affordability is already constrained across the country, and tariffs could play a role in making that worse,” says Ali Wolf, chief economist for NewHomeSource. “New home prices might rise as a response, typically to the tune of $5,000 to $10,000.”
Home shoppers should be aware of how builders are monitoring material costs and buyer activity. If tariffs push prices up, incentives may be offered to help offset affordability challenges. Some builders may shift strategies — delaying starts or adjusting plans for homes built before a buyer is found — based on cost pressures.
Staying informed as a buyer can help you stay ahead:
Ask questions
Understand local dynamics
Shop around for a home that fits your budget and timeline
One potential avenue to turn to as costs and prices potentially rise due to tariffs may be the existing-home market. However, Wolf cautions that many of the same cost dynamics may be present in the resale market.
“The tariff impact isn’t isolated to just new homes, though,” says Wolf. “If you are considering an existing home that needs to be remodeled, you might be surprised with how much money the whole project will cost.”
Whether you are buying a new home or remodeling an existing one, tariffs are becoming an increasingly relevant part of the equation. While not the sole factor shaping the market, they influence everything from material costs to builder timelines. For buyers, understanding these dynamics — and how builders are responding — can help them make smarter and more confident decisions in the complex housing landscape.
