Thinking about buying a new home? Brace your wallet — tariffs are already hitting Americans hard, jacking up the cost of building a home by nearly $11,009 in 2025, and it’s only getting worse.
Tariffs slapped on everything from Canadian lumber to Chinese appliances are sending construction costs through the roof — and the fallout is hitting buyers square in the bank account.
“Tariffs are pricing Americans out of the housing market — plain and simple,” said a senior housing analyst. “Builders can’t eat the cost, so guess who pays? You do.”
Lumber, Drywall, Appliances — You Name It
The biggest offender? Canadian softwood lumber, which is essential for framing homes across the U.S. With new investigations underway that could trigger even steeper tariffs, builders say the price of lumber is already ballooning.
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Up to $1,092 extra per home just from potential new lumber duties.
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Lime and gypsum — critical for drywall — face a looming 25.25% tariff amid trade tension with Mexico.
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Over 54.5% of America’s home appliances come from China, where a punishing 126.25% tariff is already in place.
And it doesn’t stop there. Think thermostats, gas ranges, light fixtures, and even ceramic bathtubs — all imported, all more expensive.
The Cold, Hard Numbers
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$11,009: The average added cost of a new home in 2025 due to tariffs.
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34.3%: Increase in building material costs since 2020.
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116,749+: Number of Americans who could be priced out of homeownership if prices jump just $1,010 more.
For families already struggling with sky-high mortgage rates and a tight housing market, this could be the tipping point.
How Tariffs Hit Your Wallet Twice
Not only are homes more expensive, but borrowing to buy them is pricier too. Tariffs tend to drive inflation, which pressures the Federal Reserve to keep interest rates high — or even raise them further.
That means higher monthly mortgage payments, even as buyers shell out more upfront.
And don’t expect a break if you’re renovating. Homeowners looking to remodel will find their budgets blown to bits thanks to pricier imported appliances and building materials.
Who’s Getting Hurt the Most?
Middle-class Americans hoping to buy their first home are getting clobbered. Every $1,010 increase in home price knocks more than 116,749 potential buyers out of the market. Meanwhile, wealthier buyers or investors may just absorb the hit.
This tariff-fueled price surge couldn’t come at a worse time. The U.S. is still facing a major housing shortage, and rising construction costs are discouraging builders from breaking ground on new developments.
The Bottom Line
Americans dreaming of homeownership are getting squeezed — by politics, global supply chains, and policies they can’t control. If more tariffs go into effect, the American dream may slip even further out of reach.
If you’re thinking of buying, building, or remodeling — watch those tariff headlines closely. What starts in Washington could end up adding thousands to your closing costs.