The Impact of Tariffs on Home Prices
If you’ve been thinking about buying a new home, you may have heard that tariffs are likely to cause home prices to rise soon. Recently imposed tariffs, along with others currently on a *90-day pause, could lead to significantly higher costs for building materials. This could eventually drive up the price of homes, leaving many potential buyers wondering if now is the best time to act.
In this article, we’ll break down the impact of these tariffs, where building supplies come from, and how they could affect your home purchase decision. Understanding how tariffs impact the cost of building materials is important when making a choice about when to buy your home.
How Tariffs Are Expected to Affect Home Prices
What Are Tariffs and Why Do They Matter?
Tariffs are taxes on goods imported from other countries, and they have a direct impact on the cost of the materials used to build homes. In the case of housing, tariffs have recently been imposed on crucial building supplies, such as lumber, steel, aluminum, and appliances. With tariffs already in place and others on a 90-day pause, these taxes are expected to drive up the cost of these materials, leading to higher home prices in the near future.
In other words, if you’re considering buying a home, you might want to act quickly to avoid the inevitable price increases that are expected as tariffs impact the cost of materials.
Where Do Homebuilding Materials Come From?
Most of the materials used in homebuilding are sourced from other countries. When tariffs are imposed, the cost of these materials rises, and this is ultimately passed down to homebuyers. Here’s a closer look at the top countries supplying key imported materials to the United States and the tariffs currently in place on those materials:
China:
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Tariffs: 145% as of April 11, 2025 (Source: zonos.com)
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Share of U.S. Imports Supplied by China:
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43.6% of small hand tools, power tools, and appliances (Source: Trading Economics)
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23.7% of windows, doors, floor tiles, and insulation (Source: Trading Economics)
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3.6% of aluminum (Source: China Briefing)
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2.2% of steel (Source: China Briefing)
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Canada:
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Tariffs: 25% as of April 11, 2025 (Source: natlawreview.com)
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Share of U.S. Imports Supplied by Canada:
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58% of aluminum (Source: The Fool)
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80% of lumber (Source: U.S. Census Bureau)
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23% of steel (Source: Statista)
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Mexico:
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Tariffs: 25% as of April 11, 2025 (Source: natlawreview.com)
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Share of U.S. Imports Supplied by Mexico:
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22% of kitchen appliances (Source: U.S. Census Bureau)
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33% of gypsum (used in drywall) (Source: Observatory of Economic Complexity)
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12% of steel (Source: International Trade Association)
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As you can see, these countries supply a significant portion of the materials used in building homes. With tariffs raising the cost of these imports, home prices are likely to increase.
What Does This Mean for Homebuyers?
Rising Costs of Building Materials
Due to the tariffs on building materials, the cost of constructing a new home is expected to rise. For example, Jim Tobin from the National Association of Home Builders (NAHB) explains, “Most of our members are estimating that the cost could go up by a little over $9,000. It might decrease now that some tariffs are relaxed, but it could also rise depending on how many materials are still being imported from China. We expect the extra cost to be somewhere between $7,500 and $10,000.” (Source: CBS News).
With some tariffs already in place and others on a 90-day pause, uncertainty still surrounds what the future may hold. What is certain is that the cost of home building materials will significantly increase.
How Much Will Home Prices Increase?
The expected increase in home prices could vary, but it’s clear that tariffs will play a major role in driving up costs. With rising material costs, new home prices could be higher than expected. For those looking to buy a home, acting sooner rather than later might help you avoid these price increases.
Is Now the Right Time to Buy a Home?
While tariffs are expected to drive up home prices by as much as $10,000, there is still an opportunity to lock in lower prices before they rise. Manufactured homes, in particular, remain a more affordable option for many buyers. According to the U.S. Census Bureau, manufactured homes can save buyers an average of $70 per square foot compared to traditional site-built homes.
Now might be a good time to consider a manufactured home, especially if you’re looking for an affordable option that offers great value without sacrificing quality.
Why Choose Oak Creek Homes?
Affordable, High-Quality Homes
Oak Creek Homes offers manufactured homes that are built to last and are designed with quality in mind. Here’s why Oak Creek Homes could be your ideal choice for your homeownership journey:
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Better Quality: Our homes are built with weather-ready materials that ensure durability, even in harsh conditions.
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Better Design: Choose from a range of stylish, modern floor plans that offer affordable luxury.
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Better Living: Our homes are energy-efficient, eco-friendly, and family-oriented.
Lock in Pre-Tariff Prices Now
Oak Creek Homes is committed to offering the best value possible. With tariffs expected to raise prices, you can lock in lower pre-tariff prices by acting fast. Unlike other builders, who are already adding price protection clauses, Oak Creek Homes has opted not to implement these measures at this time, which allows them to pass the full savings directly onto you. Dwayne Teeter, CEO of Oak Creek Homes, explains, “We’re committed to offering our customers the best value possible. By not adding price protection clauses, we can allow our buyers to lock in today’s prices before tariffs drive up costs.”
How to Lock in Your Home at Lower Prices
Here’s how you can secure your Oak Creek home at pre-tariff pricing:
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Order a new manufactured home by May 1, 2025, to lock in current prices and save up to $10,000.
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Choose from over 450 manufactured homes in inventory that are ready for delivery and save up to $10,000 with pre-tariff pricing.
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Don’t wait—the longer you wait, the more you might pay due to tariffs and rising material costs.
Frequently Asked Questions (FAQs)
Q1: How will tariffs affect the cost of building materials?
Tariffs will make imported materials more expensive, which in turn raises the cost of constructing homes. This leads to higher home prices for buyers.
Q2: Will the pause on some tariffs help reduce costs?
The 90-day pause on certain tariffs may offer temporary relief, but it’s uncertain whether these tariffs will return or increase, which could still result in price hikes.
Q3: How much more will homebuyers pay because of tariffs?
Experts estimate that home prices could rise by $7,500 to $10,000 due to increased material costs from tariffs.
Q4: Is it still affordable to buy a manufactured home?
Yes, manufactured homes remain a more affordable option than traditional site-built homes, saving buyers an average of $70 per square foot.
Act Now to Lock in Pre-Tariff Pricing
If you’re considering buying a home, now might be the best time to act before tariffs drive up home prices. Oak Creek Homes offers an opportunity to lock in pre-tariff pricing on singlewide and doublewide homes, helping you save money on your future home purchase.
Contact us today or stop by one of our 19 home centers to explore your options and secure your dream home before prices increase.
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Oak Creek Homes is an award-winning manufacturer known for high-quality construction, innovation, and affordability. They can deliver manufactured, modular, and mobile homes to Texas, Oklahoma, Louisiana, Arkansas, and parts of New Mexico.
*Please note: The tariff situation is ongoing and may continue to change. The information in this blog is current as of April 11, 2025.
