5. Tariffs Could Drive Up Housing and Renovation Costs

Beyond taxes and deductions, Trump’s tariff policies may indirectly affect homeowners through higher construction and renovation expenses.

Rising Costs for Building Materials and Appliances

Tariffs on imported goods—including steel, aluminum, and Canadian softwood lumber—raise costs for homebuilders, contractors, and retailers.

Major home improvement chains have already acknowledged tariff-related price pressures:

• Home Depot reports that nearly half its inventory is imported, contributing to higher prices
• Lowe’s sources about 60% of its products domestically but has not ruled out future increases

For homeowners planning renovations, remodeling projects, or new construction, these costs can add up quickly—especially when combined with higher home insurance premiums and labor shortages.

Impact on Homebuyers

Tariffs on raw construction materials increase the cost of building new homes, which developers often pass on to buyers. Industry groups like the National Association of Home Builders warn that tariffs function as a hidden tax on housing.

As a result, prospective buyers may face higher home prices, even if mortgage rates stabilize or decline.