🏡 Tariffs Are Back in the Headlines—Here’s How They Could Impact Real Estate

As global trade tensions rise, so do ripple effects across the U.S. economy. Tariffs are making headlines again—here’s what that could mean for homebuyers, sellers, and homeowners right here in Denver.

🧱 Tariffs Raise Construction Costs

• 30% of U.S. homebuilding materials are imported.
• Tariffs could raise costs on lumber, cabinetry, appliances, countertops, and more.
• Material tariffs can add $8,000–$15,000 to a new home’s cost. 

BHD Take: Expect fewer new builds and higher price tags for both new construction and renovations.

🚧 Supply Disruptions Shrink Inventory

• Fewer homes completed = more competition for existing inventory
• Contractor schedules tighten, project timelines stretch
• Builders may delay or cancel projects due to price uncertainty

💵 Tariffs → Inflation Pressure → Rate Hikes?

• Higher mortgage rates reduce buyer affordability
• Refinancing slows down; homeowners hesitate to move
• 1% rate hike = up to 10% drop in affordability

🏠 Impact on Current Homeowners

• Rising replacement costs = higher insurance premiums
• Contractor delays or rising bids for remodels
• Higher assessed home values could mean larger property tax bills

BHD Insight: Now’s a great time to plan ahead for repairs and updates before prices or timelines shift further.

🔍 Smart Buyer Moves Right Now

• Seek out recently updated homes to avoid costly upgrades
• Explore rate buydowns or seller credits to offset higher interest rates
• Think long-term: Denver remains a strong value market due to job growth, lifestyle, and demand

🧭 BHD’s Bottom Line

Tariffs may feel like distant economic policy, but their effects touch home values, rates, timelines, and buyer behavior. Understanding the bigger picture empowers you to make strategic moves in real estate.

📚 Sources & Further Reading

• National Association of Home Builders
• Freddie Mac – Affordability Trends
• CNBC – Tariff Impact on Homebuilding