How Tariffs and Immigration Changes Are Affecting Your Housing Options

You've probably noticed that home prices are steadily climbing, and it's becoming increasingly challenging to find affordable options. There are a few behind-the-scenes factors contributing significantly to these changes, and they're directly related to recent shifts in trade and immigration policies.

New tariffs on goods imported from countries like China, Canada, and Mexico have a major impact on home construction costs. Materials such as steel, aluminum, lumber, and even electrical components, are heavily used in building homes and have seen noticeable price increases due to these tariffs. Recent studies indicate about 70% of building materials are goods, and a significant portion of these goods—roughly 25%—come from abroad. This means builders face higher expenses, which ultimately get passed down to homebuyers.

Additionally, tighter immigration policies have significantly reduced the availability of skilled labor in the construction industry. Immigrant workers have traditionally played a crucial role, making up about 20% of the construction workforce. With fewer skilled workers available, labor costs are rising, projects are taking longer to complete, and ultimately, fewer new homes reach the market.

These combined factors have a direct impact on home affordability. Homebuyers and renters alike are finding fewer affordable options, making homeownership or renting more financially challenging. Understanding these market shifts can help you plan your next move, whether you're buying, renting, or investing in real estate.