Building Costs Just Spiked — Here’s What Buyers & Sellers Need to Know

The word of the day? Tariffs.

And if you’ve been keeping an eye on the real estate market, you might have noticed—it’s anything but predictable these days. One minute we’re watching interest rates, the next, an international trade dispute is throwing a wrench into the cost of building homes. Let’s break down what this means for buyers, sellers, and everyone in between.

So, Why Are Building Costs Climbing?

Imagine you’re about to build a home. You’ve got your plans, your team, and a solid timeline—then boom: tariffs on steel, aluminum, and lumber kick in. These materials are the backbone of most builds, and now, they come with a heavier price tag.

According to the National Association of Home Builders, tariffs have added an average of $9,200 to the cost of constructing a new home. That’s not pocket change—it’s a game-changer. And it’s not just builders who feel it. Those costs are passed on to buyers, developers, and even local housing markets.

What Does This Mean for Buyers?

For buyers hoping to go the new-construction route, the increased cost might push a dream home just out of reach. It’s like getting to the checkout line only to find out the item you wanted is no longer on sale—and now you’re rethinking the entire purchase.

As a result, many buyers are shifting focus from new builds to existing homes—which, in theory, should boost demand for resale properties.

And for Sellers?

If you’re a homeowner considering selling, this shift could work in your favor—more buyers looking at existing homes might mean more interest in yours.

But there’s a catch: Higher mortgage rates and inflated home prices mean many buyers are more cautious. They're doing the math, shopping carefully, and thinking twice before making offers. It’s a market of hesitations, not bidding wars (at least for now).

It’s All One Big Balancing Act

What we’re seeing is a push-pull effect. Tariffs raise costs. New construction slows. Buyers pivot. Sellers adjust. Mortgage rates play referee. It’s a delicate dance where timing, pricing, and patience matter more than ever.