Particle.news
Download on the App Store
5 ARTICLES
·
2mo ago

Trump's Steel Tariffs Could Push Housing Costs Higher

New 25% tariffs on steel and aluminum may raise construction expenses and delay projects, exacerbating the U.S. housing shortage.

A home under construction at the Waterways subdivision in Gulf Shores, Ala., Dec. 6, 2024.
Trump has imposed 25% tariffs on steel, which is key to the construction of mid- and high-rise residential buildings.
Donald Trump Has Spooked the Housing Market
Inflation has hit the nation’s homebuilders hard as they face increased costs for supplies and labor. They are dealing with high rates from the Federal Reserve and uncertainty over what’s to come with the Trump administration’s tariff strategy that could increase prices. (AP/David Zalubowski)

Overview

  • The 25% steel and aluminum tariffs, set to take effect on March 12, are expected to increase construction costs for mid- and high-rise buildings, which rely heavily on steel.
  • Developers may delay or cancel projects due to rising material costs, further straining housing supply in an already tight market.
  • The National Association of Homebuilders criticized the tariffs as counterproductive to President Trump's stated goal of reducing housing costs and increasing supply.
  • Tariffs on other construction materials, such as Canadian lumber and Mexican drywall, are also being considered, potentially compounding cost pressures for builders.
  • Economists and industry leaders warn that higher costs could be passed on to renters and buyers, worsening affordability challenges in the housing market.