• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Trump tariffs could prove to be a menace for homebuyers: here’s why

by March 6, 2025
written by March 6, 2025

US housing stocks are having a hard time this year amidst higher tariffs the Trump administration has announced on the likes of Canada and Mexico.

Washington relies significantly on foreign imports for materials essential for home construction. These include cement, aluminum, steel, wood products, and even some appliances.  

As a result, the cost of building a house will likely increase materially in the wake of Trump tariffs, according to a recent report from CoreLogic.

That’s part of the reason why the iShares US Home Construction exchange-trade fund (ETF) has lost nearly 12% since late January.

Canada and Mexico export two key home construction materials

In particular, the US relies on Canada and Mexico for two essential home construction materials: gypsum products including lime and softwood lumber.

The world’s largest economy imports nearly 70% of the softwood lumber from Canada while 71% of the gypsum products it requires come from Mexico.

“Even incremental increases in the cost of materials, labour, and equipment make it that much more difficult to build a home profitably,” according to CoreLogic’s executive Pete Carroll.

Trump tariffs will make it significantly more difficult for the US to close the critical gap in housing supply, he added in a statement on Thursday.

US home prices could increase by up to $22,000 in 2025

All in all, the information services provider expects Trump tariffs to increase construction costs by up to 6% over the next 12 months.

Such an increase will raise sticker prices on new homes by $17,000 to $22,000, as per a CoreLogic estimate.

That’s significant considering the average price of building a home in the US already sits at a whopping $422,000.

US housing stocks are seeing pressure this year as tariffs and the related increase in construction costs could hurt affordability and prove to be a menace for the first-time homebuyers in 2025.

Investors should note, however, that homebuilders are broadly known to be dividend stocks.

US continues to grapple with a housing shortage

What’s also worth mentioning is that Trump tariffs do not paint a rosy picture for construction materials that are produced within the United States either.

Recent data indicates that “a rush on domestic materials would overwhelm current production,” and may lead to supply shortages and higher prices over the medium to long term, according to the CoreLogic report.

And “as builders pass extra costs on to homebuyers, housing will become less affordable” in the US, said Matt Saunders of John Burns Research & Consulting in a recent interview with CNBC.

Note that housing shortage in the United States is a significant concern that has built over decades. The country currently faces a deficit of about 4.5 million homes, as demand continues to outpace supply.

The post Trump tariffs could prove to be a menace for homebuyers: here’s why appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Pause in US foreign aid has UN in panic over funding cuts, Trump says world body ‘not being well run’
next post
Alibaba leads Chinese tech rally with DeepSeek rival launch: What investors need to know

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Deep State resistance taught Trump he needed to tame bureaucrats

    February 18, 2025
  • Trump won’t wait for Senate confirmations to shake up State Department: source

    January 17, 2025
  • Egypt reportedly releases details on plan to rebuild Gaza; there’s no mention of ‘cooperation’ with the US

    February 13, 2025
  • Tim Walz wouldn’t call for TikTok ban on government devices even though over 75% of other states did

    September 25, 2024
  • Echoing Hamas, Erdogan reportedly calls for Israel’s destruction amid push to rekindle ties with Trump

    March 31, 2025

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,721)
  • Investing (624)
  • Stock (773)

Latest Posts

  • TNA Stock: Predictions, Live Stats, and What to Know

    August 30, 2024
  • First on Fox: Top outside group backing Senate Republicans showcases fundraising haul

    October 15, 2024
  • Chinese companies secure record $14 billion in offshore convertible bonds amid high-interest rates

    July 23, 2024

Recent Posts

  • Elon Musk outlines ‘super obvious’ changes DOGE and Treasury have agreed to make

    February 9, 2025
  • 10 Dems join Republicans to punish Al Green for Trump speech outburst

    March 6, 2025
  • Putin thanks Trump for principles of ceasefire push, but does not say yes

    March 13, 2025

Editor’s Pick

  • Here’s the real reason Trump and Zelenskyy’s deal blew up in the Oval Office

    February 28, 2025
  • New Hur interview tapes detailing Mongolia trip shed light on Hur’s ‘sympathetic’ characterization of Biden

    May 17, 2025
  • No signal, no problem: Intelligence firm debuts drone tech equipped to beat GPS jammers

    March 25, 2025
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock