this The US housing market is already struggling At the weight of high mortgage loan interest rates, one The supply of existing houses is low in supply, and housing prices in history are high.
Now, tariffs on building materials are increasing more pressure.
About 30 % of the cork and wood consumed in the United States are imported from Canada. Wallboard is called gypsum and imported from Mexico. 25 % of Tariffs CEO Donald Trump collects products from two major trading partners, which will make these products more expensive. this Mexican tariffs have been postponed One month on Monday, but it will still be on the desktop in the future.
Carl Harris, chairman of the National Housing Construction Merchants Association, wrote in a press release: “Carl Harris, chairman of the board of directors of the Domestic Construction Merchants Association, is in a press release. The press release said: “More than 70 % of the basic materials (cork and gypsum) depended on the households of houses from Canada and Mexico, respectively. “The tariffs of wood and other building materials have increased construction costs and prevented new development. Consumers eventually paid tariffs in the form of higher housing prices. “
House prices have risen According to the latest readings of the National House Price Index of Standard Corelogic CoreLogic Corelogic Case-Shiller, since the popularity has begun, November has increased by 3.8 % in November. The annual growth is higher than 3.6 % in October.
The responsibility of building materials may make it more difficult for buyers.
Analyst of Jaret Seiberg TD COWEN WASHINGTON research team.
Potential buyers sold a property during an open day near Clarksburg, Maryland.
Roberto Schmidt | Agence France -Presse | Getty image
NAHB asked the Trump administration to exempt 25 % of tariffs and pointed out that his administrative order was the first day when he served as president, trying to “expand housing supply.”
Although the United States has increased wood production in recent years, 70 % of the imported wood factories and wood products imports ($ 8.5 billion) from the country ($ 8.5 billion) came from Canada. They have levied 14.5 % tariffs, so Trump’s new policy has raised it to more than 39 %.
71 % of lime and gypsum products come from Mexico, totaling $ 352 million. Other materials such as steel and electrical appliances are from China. trump card Increase a 10 % tariff Saturday products from China.
According to NAHB, new responsibilities imported from China, Canada and Mexico may increase the cost of building materials by $ 3 billion to $ 4 billion. If they are effective, it will affect the ability of builders to complete the project.
Tariffs may hit smaller housing builders with higher profit margins, but large builders are not immune.
Sheryl Palmer said: “Even if there are smaller wood in our wood from Canada, and some materials from Mexico, we will be affected-in turn, which may affect consumers and their ability to buy houses in the short term. “, CEO of Taylor Morrison, a house -based house building in Arizona. “When some consumers are still trying to overcome higher interest rates, my sincere hope is that these people will be short.”
Builders have competed with labor shortage, and this shortage will become worse after the Trump administration began to expel unlicensed immigrants. It is estimated that about 30 % of construction workers are immigrants. A large part of these workers have no documents. According to the National Immigration ForumAn immigration advocate group.
“You can transport them all of them, but who will build a house?” Said Bruce McNeiLage, CEO of Single House developer Kinloch Partners.
Although most of the impact of tariffs is built on new housing, the existing market may also feel this impact. If the cost of other consumer goods increases, all potential buyers will have less spare cash to save down payment.
It is also expected that interest rates will decline this year, but if inflation is upgraded again due to tariffs, interest rates may even rise. This level of economic reality and emotional views on personal wealth may hit the most important, upcoming spring market.
