By: Aaron Eller
April 9, 2025
President Trump’s Tariffs Affect on the Housing Market
Introduction
President Trump has placed Tariffs on other countries and many experts call this a start to a global trade war. This article will explain what you need to know about the effect these Tariffs will have on the Real Estate Market. Tariffs have a direct impact on the cost of home construction, renovation, and even maintenance. And when those costs go up, they likely will affect home prices—and that can change the market for buyers and sellers. If you’re a homeowner thinking, “I need to sell my house for cash,” or you’re facing a situation like foreclosure, inheritance, or divorce, it might be a perfect time to sell your house. At Cash Offer Man, we’re a local home buying company in St. Louis that specializes in buying houses AS-IS, for cash, giving you a faster, more flexible way to sell. Let’s dig into what you need to know.
What Are Tariffs and Why Do They Affect Home Prices?
Tariffs are taxes placed on goods imported from other countries. When the United States Government adds tariffs to products such as: lumber, steel, or appliances, these are materials that are commonly used in home building or renovation. This drives up the price of those goods, which will trickle down to everyone, especially homeowners and buyers. Contractors will have to pay more, developers will spend more, and eventually, those inflated costs impact home values. If you’re a seller this could be good news if new home prices are higher because of the increased costs. This can make existing homes a desirable cheaper alternative or increase their prices as well which would benefit the sellers. If your home needs work done on it, the Tariffs could increase your rehab prices and cost you more money than last month. This is where homeowners begin to ask, “Should I just sell my house without a realtor or make the needed repairs?”
The Rising Cost of Home Construction and Renovation
Lumber prices are one of the biggest factors for the materials cost of new home construction. A large percentage of lumber is produced in China, with President Trump’s 104% Tariff on all Chinese Goods which will affect lumber prices. The price of lumber is currently averaging $490 per 1,000 board feet. That price is the supplier price located here in America, that supplier imports from China and the Chinese company makes money from producing it. Now the Chinese company has to pay 104% Tariff on the price when they sell it in America, most likely to a wholesaler or supplier. This causes them to either go out of business or raise their prices. Lumber is just one part of home construction. The tariffs will increase the material cost for goods that are not produced in America. Even products and materials that are produced in America, usually have subparts made overseas.
How Tariffs Affect the Interest Rates
The second big part of Tariffs’ effect on Housing Prices is the interest rates. You have probably heard all about the interest rates and how that is keeping demand low and supply low because people don’t want to move when they currently have a low mortgage rate or they can’t afford a house because of the high mortgage rates. The mortgage rates are influenced by the federal funds rate which is controlled by the Federal Reserve. The Federal Reserve’s main goal is to combat inflation, and protect the American Dollar. Tariffs are inflationary, which means they increase the cost of goods and services, weakening the Dollar. The Federal Reserve is hesitant to lower interest rates when inflation is imminent, high tariffs will scare the Fed from dropping rates to prevent inflation from rising like in 2022.
How Tariffs Affect the Value of Your Home
We went over the 2 main parts of how tariffs will affect the housing market, now how will these factors change the value of your home? The increased cost of materials will drive up the cost to build new homes, this will increase home prices. New builds will be more expensive which will simultaneously help increase existing homes. If the mortgage rates stay high where they currently are around 6-7% the demand will stay around the same. A lot of potential home buyers are waiting for lower mortgage rates of around 3-5% where they can afford a house. A lot of Americans that are renting can’t afford a mortgage with high interest rates, while existing home owners don’t want to give up their low interest rate of 2-4% that many home owners received in 2020-2021. This lower demand can slow down the market but while supply remains low it should limit the chance of a large drop in home prices. Our estimate is that home prices will remain relatively similar, a small tick up or down depending on materials cost and interest rates.
Buyers Could Struggle in a Tariff-Driven Market
Buyers could have the most downside to Tarrifs. If a buyer is looking to purchase a new build home or do the construction themselves, the materials used will be higher and cause them to spend more money. If the Federal Reserve keeps interest rates high, this will hurt Home Buyers payment from their mortgage with a high interest cost. The mortgage payment is usually made up of Pricnipal, interest, taxes, and insurance. These Tariff factors in the Real Estate Market will have the biggest burden on Buyers more than Sellers.
How Cash Home Buying Companies Help in a Tariff-Driven Market
One of the biggest advantages of working with a cash home buying company like Cash Offer Man is that you don’t have to worry about repairs, updates, or even cleaning. We buy houses AS-IS, no matter the condition. That means no waiting on contractors, no negotiating with buyers over repairs, and no stress. In a market where tariffs are inflating costs and slowing down traditional real estate transactions, working with a cash buyer means you can sell your house fast in St. Louis or anywhere in Missouri. And because we’re local home buyers, we know the market inside and out. We give fair cash offers based on your property’s current condition, not the inflated cost of making it picture-perfect.
Selling As-Is: The Advantage in a Tough Market
Let’s say you inherited a home from a relative, but it needs a lot of work. Maybe you’ve gone through a divorce or are trying to stop a foreclosure. In each of these situations, time and flexibility matter. Selling your house as-is means you skip the long, expensive process of preparing your home for listing. And with tariffs making materials and labor more expensive, those savings are even more significant. That’s where Cash Offer Man steps in. We help homeowners who say, “I need to sell my house fast in St. Louis,” or “I’m selling my house for cash in Missouri and don’t want to fix anything.” You don’t need to spend a dime—just reach out, and we’ll make you a no-obligation cash offer.
Special Situations Made Harder by Tariffs
Tariffs make everything harder—especially when you’re already in a tough spot. If you’ve inherited a house, you might be facing maintenance issues or back taxes. If you’re going through a divorce, you may need to sell quickly to divide assets. And if you’re trying to stop foreclosure, time is of the essence. In all of these cases, the rising cost of materials and labor due to tariffs only adds pressure. That’s why more sellers in these situations are turning to cash home buyers in St. Louis. We specialize in helping people in complicated or stressful situations sell their homes quickly and without any hassle. No waiting, no repairs—just a fair cash offer and a closing timeline that works for you.
What Homeowners in St. Louis Should Do Right Now
If you’re thinking of selling and you’re worried about how tariffs might impact your home value, your next move is simple: take action. Start by evaluating your equity and getting a no-obligation cash offer from a trusted local home buying company like Cash Offer Man. Waiting could cost you. Material prices aren’t dropping anytime soon, and the longer you hold onto a home that needs work, the more expensive it becomes. Whether you’re in North County, South City, or out in St. Charles, our team is ready to help you navigate the selling process with clarity and confidence. We’re here to help you sell fast, sell smart, and sell on your terms.
Why Choose Cash Offer Man
At Cash Offer Man, we’re not just another one of those big, out-of-town companies that buy houses. We’re local. Our entire team lives and works right here in the St. Louis area, and we care about the community. We have had the pleasure of helping hundreds of homeowners sell their homes fast—no fees, no repairs, no delays. Whether your home is located in Ferguson, Florissant, Ballwin, or Bridgeton, we’ll meet you where you are. We’re known as one of the best home buyers in St. Louis for a reason: we’re fair, fast, and flexible. If you need to get a cash offer on your house in St. Louis, reach out today 314-912-4939
Final Thoughts: Don’t Let Tariffs Drain Your Home Equity
Rising tariffs are putting pressure on everyone—from builders to buyers to homeowners. The important thing to remember is that America is the world’s leading economy. While the stock market goes up and down and the value of your home can fluctuate as well. The risk of a collapse in prices is very slim and unlikely. If you are needing to sell or want to know what your home is worth, we would love to give you a free cash offer. Fill out the form at the top of the website and our team will get right with you.
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