How Tariffs Are Impacting the Housing Market — and What That Means for You

If you're planning to buy, rent, or build a home in the near future, you’ve probably noticed that the real estate market feels a bit, well, complicated. Rising costs, tight inventory, and interest rate changes are making headlines daily. But there’s another factor behind the scenes that’s adding to the pressure — tariffs on construction materials.

At Luminate Bank, we believe knowledge is power, especially when it comes to your financial decisions. Let’s take a look at how tariffs are creating a “perfect storm” for the housing market — and what that means for you.

1. Building a Home Is Getting More Expensive

Tariffs on imported materials like steel, aluminum, and lumber are causing the cost of new construction to rise significantly. When builders have to pay more for the materials they need, those costs often get passed along to buyers in the form of higher home prices.

A recent article from HousingWire explains that these added expenses are making it harder for builders to deliver affordable housing, especially at a time when demand already outweighs supply. And according to a report from Axios, homebuilder confidence is falling, with tariffs cited as a major contributor to rising costs and project delays.

What it means for you: If you’re in the market for a new construction home, be prepared for higher price tags or longer wait times —and consider getting pre-approved early to lock in your budget.

2. Renters May Feel the Ripple Effects Too

It’s not just homebuyers who are affected. As the cost of construction increases, developers are becoming more cautious about launching new rental projects. This could reduce the number of available rental units — especially in high-demand areas — which puts upward pressure on rent prices.

Investopedia notes that tariff-related uncertainty is slowing the anticipated decline in U.S. rents, meaning relief for renters may not come as soon as expected.

What it means for you: If you’re renting, you may see fewer new options and rising prices in your area. It may be a good time to explore long-term options like buying — especially if you plan to stay put for a while.

3. Economic Uncertainty Is Causing Hesitation

Beyond material costs, tariffs have contributed to broader economic uncertainty. With inflation pressures and rate shifts in play, some buyers are choosing to wait and see how the market evolves. This can lead to a cooling effect on home sales, even as housing needs remain high.

As Business Insider explains, the market had begun to show signs of recovery, but ongoing trade policy tensions are starting to stall that momentum.

What it means for you: If you’re unsure whether now is the right time to buy or invest, talking to a financial expert can help. Every situation is unique — and our team is here to guide you through it with confidence.

Navigating Change with Confidence

At The CL Team, we understand that big financial decisions don’t happen in a vacuum. From global policies to material costs, market shifts shape what’s possible for you — and we’re here to help you navigate it all.

Our goal is to shine a light on the path forward, no matter how complex the landscape becomes. Whether you’re buying your first home, refinancing, or saving for a future move, we’re here to help you make informed, empowered decisions.

Ready to get clarity on your next steps? Let’s talk about how you can move forward — confidently.