If you’ve been keeping an eye on the news, you’ve probably heard talk about tariffs—especially those on construction materials like lumber, steel, and aluminum. But what does that mean for you as a homeowner, buyer, or investor?
Long story short: higher tariffs = higher costs to build and renovate homes.
Let’s break it down and look at how this could impact Seattle’s already expensive housing market.
What’s Happening With Tariffs?
The U.S. has imposed (and is considering increasing) tariffs on key construction materials from countries like Canada, China, and Mexico. Why? The government argues that these tariffs help protect American manufacturers and jobs. But there’s a trade-off—builders and developers now have to pay more for materials, and those costs get passed down to buyers and renters.
Some of the key tariffs affecting housing:
Lumber tariffs: The U.S. recently increased tariffs on Canadian softwood lumber—a key material in home construction. This could drive up prices for new builds and home renovations.
Steel and aluminum tariffs: Used in everything from framing to appliances, tariffs on these materials will make construction and home improvement projects more expensive.
China tariffs on goods like countertops and fixtures: If you’re planning a kitchen or bathroom remodel, expect to pay more for materials imported from China.
How Will This Affect the Housing Market?
Higher Home Prices
When it costs more to build homes, developers pass those costs onto buyers. That means new construction could become even less affordable in Seattle, where we already have some of the highest home prices in the country.
More Expensive Renovations
Thinking of updating your kitchen or adding an ADU? Materials like lumber, steel, and imported appliances will cost more, making renovations pricier than they were a year ago.
Tighter Inventory
If builders slow down production due to rising costs, we’ll continue to see low housing inventory, keeping demand high and competition fierce for buyers.
Higher Rents
If construction slows, fewer new apartments and rental units will hit the market—driving rents up even further.
What Can You Do?
If you’re buying a home:
Look at homes that don’t require major renovations. With material prices rising, buying a fixer-upper might not be the deal it once was.
Consider new construction before prices go up even more. Builders may try to lock in lower prices now before tariffs fully take effect.
If you’re a homeowner thinking about remodeling:
Get quotes ASAP. Prices on materials are expected to increase throughout 2025, so starting sooner could save you thousands.
Explore local and reclaimed materials. Instead of relying on imported goods, look for local lumber suppliers or salvage stores to cut costs.
If you’re a real estate investor:
Keep an eye on inventory levels. If construction slows, existing homes could see even higher appreciation.
Consider multi-family properties. With rents likely rising, investing in a duplex or small apartment building could be a smart long-term move.
Final Thoughts
Tariffs might seem like an abstract economic issue, but they directly impact what we pay for homes, rent, and renovations. The Seattle market is already expensive, and these rising costs could make affordability an even bigger challenge.
If you’re thinking about buying, selling, or renovating this year, timing is everything. Being proactive now could save you money before tariffs drive costs even higher.
What are your thoughts? Have you already noticed price increases in home projects? Drop a comment below or send me a message—I’d love to hear your experiences!
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