7 Reasons You Should Wait To Buy a Home Amid Tariff Uncertainty
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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Thinking about buying a home right now? You might want to wait. Tariff uncertainty is driving up the cost of building materials, renovations and even appliances.
From inflated home prices to unpredictable supply chains, here’s why pausing your home purchase for the time being could be a smarter financial move.
All Building Materials Could Be Costlier
High tariffs on imported building supplies like lumber, steel and aluminum can lead to unpredictable supply chains, according to George Carrillo, CEO of the Hispanic Construction Council (HCC). This significantly inflates the prices of building and renovation projects.
“This impact is felt across the board as builders pass these increased costs to buyers, making homes more expensive than ever,” he said.
It Could Be Expensive To Remodel
Because everything costs more, what you purchase may not be as up to date as possible, as even modest updates to homes, such as kitchen remodels or energy-efficient upgrades, are becoming unaffordable. That’s because many of the small touches, from appliances to fixtures, are also imported, according to Omer Reiner, a licensed Realtor and the president of FL Cash Home Buyers, LLC.
“For first-time buyers, who already stretch their budgets to the limit, these additional burdens are making homeownership feel impossible, Reiner said.
Renovation Costs Could Be Passed On
Additionally, those homes that have been renovated will cost more, as sellers who are renovating before listing and showing are going to pass any increased costs on to buyers, Reiner said.
“The key is to know what your nonnegotiables are in a home and know your absolute top-dollar budget,” he added.
New Home Prices May Be in Flux
Because of the fluctuating tariffs, Reiner said it’s difficult to project the final price of newly built homes.
Builders source everything from the lumber to frame the home to the metal pieces used for part of the roof right down to the appliances that will be installed, such as dishwashers and ovens, he pointed out.
“For a long time, importing such goods has been less expensive than buying local,” Reiner said. But that may not be the case for the foreseeable future.
With tariffs looming large and the uncertainty around them, that trend might change or be on hold. Builders will either pay for U.S.-made materials or buy from their usual out-of-country suppliers and pass the cost of increased tariffs on to the buyers.
First-Time Buyers Bear the Burden
First-time buyers should really think twice about buying in this environment, Carrillo said, as they “carry the heaviest weight.” Already battling rising mortgage rates and limited inventory, they’re now going to be confronted with inflated property and renovation costs.
And some of the ways to cut other house-related costs, like utilities, may not even work in this environment. “Items like energy-efficient appliances, once touted for long-term savings, now come with initial price tags that many can’t justify,” Carrillo said.
He feels “the outdated narrative of affordable housing fails to capture what’s happening. Prices have far outstripped wages, leaving younger generations to wonder if they’ll ever be able to own a home.”
Panic Purchases Don’t Pay Off
If homes are beginning to climb out of reach for you, don’t panic and purchase anyway because you think you’ll get the best deal now, Reiner urged.
“Mortgages that are potentially too high for your budget will stick around at that level even if tariffs are reduced or removed.”
Even refinancing down the line might not make an overpriced mortgage worth your while. “Make a solid plan with a financial adviser or real estate agent and you won’t have those regrets,” Reiner urged.
The Market Will Slow for Everyone
The financial strain of tariffs is likely to fuel a broader slowdown in the housing market, Carrillo said. Sellers may become reluctant to list their homes, worrying they won’t be able to afford their next property in the current inflated market. Buyers may hesitate, concerned about rising material costs pushing home prices further out of reach.
This trickles down beyond just the purchase price of a home, he said. “Families face higher day-to-day expenses, from skyrocketing utility bills to the increased cost of essential maintenance, adding another layer of stress to homeownership.”
The best thing to do may be to wait and keep saving money toward the home you intend to buy when prices start to come down.
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