April 13, 2025 • 9 mins
Tariffs are significantly impacting the housing market by increasing construction costs and creating uncertainty for builders and buyers alike.
• Builder confidence at a seven-month low for new single-family homes
• Tariffs estimated to add $9,200 to the price of a new home
• 7% of products in new construction are imported and affected by tariffs
• Canadian lumber and Mexican gypsum specifically exempted from retaliatory tariffs
• First-time buyers concerned about the increased cost of appliances and fixtures
• Buyers being pushed further from city centers due to rising monthly costs
• Supply chain disruptions causing construction delays and additional expenses
• Significant tariffs remain in place despite some pauses, especially on Chinese goods
• Market uncertainty affects builder planning and potential housing supply
• Financial analysts recommend long-term investors stay the course despite market fluctuations
For expert consulting on starting your own special needs housing business, reach Flowers Associates at 901-445-8148 or visit flowersandassociatesbooking.com.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome to the Deep Dive.
Today we're going to tacklesomething that really affects a
lot of us Tariffs, specificallyhow they're shaking up the
housing market, and you know thecost of things we put in our
homes.
Speaker 2 (00:13):
Right, it touches everything.
Speaker 1 (00:14):
Yeah.
So, whether you own a home,maybe you're thinking about
buying, or you're just curiousabout well, what makes the
economy tick?
We've dug into some recentreports to try and make sense of
it all for you.
Speaker 2 (00:24):
Exactly.
We've got info from ABC Newsand KPRC2 Click to Houston.
Abc really zooms in on the homeconstruction side of things and
KPRC gives us that wider view,the bigger trade picture.
Speaker 1 (00:38):
So our mission here is basically to pull out the key
stuff, clarify how thesetariffs are actually hitting the
housing market, affordabilitywithout getting bogged down in
jargon or taking political sideson what the reports say.
Speaker 2 (00:50):
Just the facts laid out clearly.
Speaker 1 (00:52):
Before we jump in, though, a quick word about a
great resource.
Flowers Associates is helpingbring you this deep dive.
Speaker 2 (00:57):
Ah, yes.
Speaker 1 (00:58):
If you've ever thought about starting your own
special needs housing businessfor adults, which is incredibly
rewarding work, flowers andAssociates offers Expert
consulting really guides youthrough it all.
Speaker 2 (01:10):
They really know their stuff in that area.
Speaker 1 (01:12):
Definitely.
You can reach them at901-445-8148 or just visit
flowersandassociatesbookingcom.
And you know, some listenersmight remember Robert Flowers
from our previous dives.
Speaker 2 (01:24):
Oh yeah, the author.
Speaker 1 (01:25):
Exactly Noted author.
Titles like the Joy of HelpingOthers, Creating Passive Income
Through Special Needs Housing.
His insights have definitelycome up before.
Speaker 2 (01:34):
A real expert in that field.
Speaker 1 (01:36):
OK, so let's get into it.
Tariffs and home construction.
What's the immediate vibe?
Speaker 2 (01:41):
Well, the ABC News report points to something
pretty clear Builder confidenceis down.
Actually, it's at a seven-monthlow for new single-family homes
.
Speaker 1 (01:49):
Seven months?
Okay, that sounds significant.
It's not just a feeling, then.
Speaker 2 (01:52):
No, no, it reflects real concerns.
Costs are going up.
There's this generaluncertainty about what's next.
Speaker 1 (01:58):
Right, and we heard from that builder, alex Yost in
North Carolina.
Yeah, alex Yost in NorthCarolina.
Speaker 2 (02:01):
Yeah, in Raleigh.
Speaker 1 (02:02):
He's already having to rethink things right where he
gets his materials from.
Speaker 2 (02:05):
Exactly he mentioned.
Like even for light fixtures,you know before it might just be
about the look, the quality.
Now he's got to think.
Speaker 1 (02:19):
OK, where was this made?
Are there tariffs?
It actually narrows his choices.
Wow, so global trade policy isliterally affecting which light
fixtures go into a house inRaleigh.
Speaker 2 (02:24):
Pretty much.
And the report said what about7% of products in new
construction are imported.
Speaker 1 (02:30):
Yeah, 7%, which, okay , maybe doesn't sound like a
huge number on its own.
Speaker 2 (02:35):
But wait till you hear the cost impact.
They estimate these tariffscould add another $9,200 to the
price of a new home $9,000.
Speaker 1 (02:43):
Ouch, For a lot of people that's a barrier.
That could be the down paymentdifference.
Speaker 2 (02:48):
Almost it's a substantial chunk, absolutely,
and it's hitting basic materials.
We're talking steel, aluminum,copper, fundamentals, yeah, and
appliances too, stuff youabsolutely need.
Speaker 1 (03:00):
Now hang on.
Didn't the report say somethings were like exempted lumber
and gypsum?
Speaker 2 (03:06):
Ah, good point.
Yes, canadian lumber andMexican gypsum were specifically
exempted from retaliatorytariffs.
Speaker 1 (03:13):
Retaliatory, so like tariffs put in place because
another country did somethingfirst.
Speaker 2 (03:17):
Exactly so.
There was some strategicthinking there, it seems.
And gypsum, just so folks knowthat's in drywall plaster cement
, pretty key stuff.
Speaker 1 (03:28):
Okay, so that's some relief, but still lots of other
materials.
The prices are going up.
Speaker 2 (03:33):
Definitely, which brings us to the buyers.
How are they feeling about this?
Speaker 1 (03:36):
Well, this was interesting in the ABC report.
The first time buyers theytalked to, they weren't
initially super worried abouttariffs stopping them from
buying the house itself.
Speaker 2 (03:46):
Right, that surprised me a little too.
The focus seems to be on thatsticker price.
Speaker 1 (03:49):
But then they started thinking about.
You know what makes a house ahome.
Speaker 2 (03:53):
That's how they put it, the insides, the appliances.
Speaker 1 (03:56):
Yeah, Washers, fridges, dishwashers.
Suddenly the tariffs on thoseimported goods, that hit home
because it bumps up the totalcost of getting set up and
messes with that monthly budget.
Speaker 2 (04:07):
Exactly, it's the total cost of ownership, not
just the purchase price and thatrealtor, Leonard Windham.
He mentioned seeing buyerspushed further out.
Speaker 1 (04:17):
Further from the city centers.
Yeah, Because those monthlycosts are just creeping up.
Speaker 2 (04:22):
Which changes, commutes, changes communities.
It all connects.
Speaker 1 (04:26):
It really does.
And beyond just the cost.
Now there's this other layer ofworry, right about the future.
Speaker 2 (04:33):
Yeah, the uncertainty .
The ABC report brought up thespeculation like what if buyers
pull back, If they get nervousabout the economy because of all
this tariff talk?
Speaker 1 (04:41):
Demand drops.
And if demand drops, maybebuilders slow down construction,
which makes the housingshortage even worse than it
already is in many places.
Speaker 2 (04:49):
Exactly, it's like a potential double hit Higher
costs and fewer houses beingbuilt.
Speaker 1 (04:54):
Man?
And what about the buildersthemselves?
Alex Yost mentioned supplychain worries too, didn't he?
Speaker 2 (04:59):
He did Really practical stuff, like if he
can't get cabinets on timebecause they're held up Right
and every month of delay meansextra cost, often for the client
who might be paying fortemporary housing.
It's not just numbers, itaffects people's lives directly.
Speaker 1 (05:14):
Yeah, that's a really crucial point.
Yeah, ok, so that's theconstruction side feeling the
pinch Increased costs, supplychain jitters, uncertainty.
Speaker 2 (05:22):
Pretty much sums it up.
Now let's maybe zoom out.
The KPRC2 report gives us thatwider economic context.
Ok, shifting gears.
Cprc2 report gives us thatwider economic context.
Speaker 1 (05:30):
OK, shifting gears.
So President Trump announced apause on some tariffs, but this
is important, not on China.
Speaker 2 (05:37):
Correct.
That's a key distinction.
The pause didn't cover China.
In fact, the report saidtariffs on some Chinese goods
actually went up.
Speaker 1 (05:44):
Right Got it and they had that analyst, mark Hamrick
from Bankrate.
Speaker 2 (05:47):
Yes, his insights were interesting.
He suggested the reason forpulling back on some of the
other planned tariffs might havebeen worries about a potential
burgeoning financial crisis.
Speaker 1 (05:58):
A crisis, wow.
What indicated that?
Speaker 2 (05:59):
He pointed to the bond market.
You know, when certain bondyields spike, like the 10-year
treasury, it can signalinvestors are getting nervous,
maybe foresee economic troubleahead.
That likely got policymakers'attention.
Speaker 1 (06:11):
Okay.
So even with that partial stepback, the tariff situation isn't
exactly resolved.
Speaker 2 (06:16):
Not at all.
Kprc emphasized thatsignificant tariffs are still
very much in place those higherChina tariffs, potential auto
tariffs, auto parts tariffs,even maybe pharmaceuticals down
the line.
Speaker 1 (06:27):
And they mentioned a number $300 billion worth of
import taxes still potentiallykicking in.
Speaker 2 (06:33):
Yeah, it gives you a sense of the scale.
It's huge.
We're still looking at baselinea 10% tax increase via tariffs
on a lot of goods, plus that 25%on certain Chinese items.
Speaker 1 (06:43):
Which ultimately could mean higher prices for us,
the consumers.
Speaker 2 (06:46):
That's the potential outcome.
Yes, across a whole range ofproducts.
Speaker 1 (06:49):
The report used Apple as an example, didn't it?
Because they rely so much onChina?
Speaker 2 (06:53):
They did, showed how their stock took a hit from the
trade tensions.
It illustrates how these bigpolicies ripple through major
companies, the stock market,investor confidence.
Speaker 1 (07:02):
So the main takeaway there is even pulling back
slightly didn't erase the risks.
Speaker 2 (07:08):
Pretty much Risks to the financial outlook economic
growth, inflation.
They're still there, maybe justheld off for a bit rather than
solved.
Speaker 1 (07:16):
And politically.
Kprc mentioned the uncertaintyaround the why right.
Is it negotiation?
Is it long-term policy?
Speaker 2 (07:23):
Hard to tell Exactly.
That unpredictability itself isa challenge for businesses
trying to plan, for investorstrying to gauge risks.
Speaker 1 (07:30):
So the market did rally a bit on the news of the
pause.
Speaker 2 (07:32):
It did, which probably had a lot of people
checking their 401ks.
Speaker 1 (07:37):
Yeah, probably, and Hamrick gave some advice for
investors in that situation.
Speaker 2 (07:41):
Pretty standard.
Solid advice really Forlong-term investors don't panic,
sell during dips.
It's notoriously hard to timethe market getting out and
getting back in right, stay thecourse.
Basically, if you're nearretirement, maybe double check
your asset mix.
Make sure it fits your timelineand risk tolerance.
Younger folks generally writeit out.
(08:01):
Time is on your side.
Speaker 1 (08:02):
Okay, so let's try and wrap this up.
Key takeaways for listeners.
Speaker 2 (08:06):
Well, first tariffs are definitely adding costs and
complexity to building a home.
Well, first tariffs aredefinitely adding costs and
complexity to building a home.
That likely means higher pricesfor new houses and maybe more
immediately felt for things likeappliances.
Speaker 1 (08:17):
Right, Even if the initial house price doesn't seem
directly hit, for some buyersthe total cost of setting up and
owning that home goes up.
Speaker 2 (08:25):
Exactly.
And second, the bigger tradepicture is still well, it's
murky.
Tensions, especially with China, persist.
Significant tariffs remain.
Potential for more exists.
Speaker 1 (08:38):
Which carries ongoing risks for the economy as a
whole Consumer prices, growth,all that.
Speaker 2 (08:43):
Yeah, so this stuff matters.
Whether you're buying a housetomorrow or just trying to
understand why things cost whatthey do, it's all connected.
Speaker 1 (08:50):
OK, so here's something to maybe chew on after
listening.
With all this uncertainty inglobal trade and how it clearly
hits home, what kind ofstrategies might people, or even
businesses, need to think aboutto navigate future bumps
related to tariffs and shakysupply chains?
Speaker 2 (09:04):
That's a really good question to ponder.
What does resilience look likein this environment?
Speaker 1 (09:08):
Definitely food for thought.
Thanks for joining us for thisdeep dive.
Welcome to the Deep Dive.
Today we're going to tacklesomething that really affects a
lot of us Tariffs, specificallyhow they're shaking up the
housing market, and you know thecost of things we put in our
homes.
Speaker 2 (00:13):
Right, it touches everything.
Speaker 1 (00:14):
Yeah.
So, whether you own a home,maybe you're thinking about
buying, or you're just curiousabout well, what makes the
economy tick?
We've dug into some recentreports to try and make sense of
it all for you.
Speaker 2 (00:24):
Exactly.
We've got info from ABC Newsand KPRC2 Click to Houston.
Abc really zooms in on the homeconstruction side of things and
KPRC gives us that wider view,the bigger trade picture.
Speaker 1 (00:38):
So our mission here is basically to pull out the key
stuff, clarify how thesetariffs are actually hitting the
housing market, affordabilitywithout getting bogged down in
jargon or taking political sideson what the reports say.
Speaker 2 (00:50):
Just the facts laid out clearly.
Speaker 1 (00:52):
Before we jump in, though, a quick word about a
great resource.
Flowers Associates is helpingbring you this deep dive.
Speaker 2 (00:57):
Ah, yes.
Speaker 1 (00:58):
If you've ever thought about starting your own
special needs housing businessfor adults, which is incredibly
rewarding work, flowers andAssociates offers Expert
consulting really guides youthrough it all.
Speaker 2 (01:10):
They really know their stuff in that area.
Speaker 1 (01:12):
Definitely.
You can reach them at901-445-8148 or just visit
flowersandassociatesbookingcom.
And you know, some listenersmight remember Robert Flowers
from our previous dives.
Speaker 2 (01:24):
Oh yeah, the author.
Speaker 1 (01:25):
Exactly Noted author.
Titles like the Joy of HelpingOthers, Creating Passive Income
Through Special Needs Housing.
His insights have definitelycome up before.
Speaker 2 (01:34):
A real expert in that field.
Speaker 1 (01:36):
OK, so let's get into it.
Tariffs and home construction.
What's the immediate vibe?
Speaker 2 (01:41):
Well, the ABC News report points to something
pretty clear Builder confidenceis down.
Actually, it's at a seven-monthlow for new single-family homes
.
Speaker 1 (01:49):
Seven months?
Okay, that sounds significant.
It's not just a feeling, then.
Speaker 2 (01:52):
No, no, it reflects real concerns.
Costs are going up.
There's this generaluncertainty about what's next.
Speaker 1 (01:58):
Right, and we heard from that builder, alex Yost in
North Carolina.
Yeah, alex Yost in NorthCarolina.
Speaker 2 (02:01):
Yeah, in Raleigh.
Speaker 1 (02:02):
He's already having to rethink things right where he
gets his materials from.
Speaker 2 (02:05):
Exactly he mentioned.
Like even for light fixtures,you know before it might just be
about the look, the quality.
Now he's got to think.
Speaker 1 (02:19):
OK, where was this made?
Are there tariffs?
It actually narrows his choices.
Wow, so global trade policy isliterally affecting which light
fixtures go into a house inRaleigh.
Speaker 2 (02:24):
Pretty much.
And the report said what about7% of products in new
construction are imported.
Speaker 1 (02:30):
Yeah, 7%, which, okay , maybe doesn't sound like a
huge number on its own.
Speaker 2 (02:35):
But wait till you hear the cost impact.
They estimate these tariffscould add another $9,200 to the
price of a new home $9,000.
Speaker 1 (02:43):
Ouch, For a lot of people that's a barrier.
That could be the down paymentdifference.
Speaker 2 (02:48):
Almost it's a substantial chunk, absolutely,
and it's hitting basic materials.
We're talking steel, aluminum,copper, fundamentals, yeah, and
appliances too, stuff youabsolutely need.
Speaker 1 (03:00):
Now hang on.
Didn't the report say somethings were like exempted lumber
and gypsum?
Speaker 2 (03:06):
Ah, good point.
Yes, canadian lumber andMexican gypsum were specifically
exempted from retaliatorytariffs.
Speaker 1 (03:13):
Retaliatory, so like tariffs put in place because
another country did somethingfirst.
Speaker 2 (03:17):
Exactly so.
There was some strategicthinking there, it seems.
And gypsum, just so folks knowthat's in drywall plaster cement
, pretty key stuff.
Speaker 1 (03:28):
Okay, so that's some relief, but still lots of other
materials.
The prices are going up.
Speaker 2 (03:33):
Definitely, which brings us to the buyers.
How are they feeling about this?
Speaker 1 (03:36):
Well, this was interesting in the ABC report.
The first time buyers theytalked to, they weren't
initially super worried abouttariffs stopping them from
buying the house itself.
Speaker 2 (03:46):
Right, that surprised me a little too.
The focus seems to be on thatsticker price.
Speaker 1 (03:49):
But then they started thinking about.
You know what makes a house ahome.
Speaker 2 (03:53):
That's how they put it, the insides, the appliances.
Speaker 1 (03:56):
Yeah, Washers, fridges, dishwashers.
Suddenly the tariffs on thoseimported goods, that hit home
because it bumps up the totalcost of getting set up and
messes with that monthly budget.
Speaker 2 (04:07):
Exactly, it's the total cost of ownership, not
just the purchase price and thatrealtor, Leonard Windham.
He mentioned seeing buyerspushed further out.
Speaker 1 (04:17):
Further from the city centers.
Yeah, Because those monthlycosts are just creeping up.
Speaker 2 (04:22):
Which changes, commutes, changes communities.
It all connects.
Speaker 1 (04:26):
It really does.
And beyond just the cost.
Now there's this other layer ofworry, right about the future.
Speaker 2 (04:33):
Yeah, the uncertainty .
The ABC report brought up thespeculation like what if buyers
pull back, If they get nervousabout the economy because of all
this tariff talk?
Speaker 1 (04:41):
Demand drops.
And if demand drops, maybebuilders slow down construction,
which makes the housingshortage even worse than it
already is in many places.
Speaker 2 (04:49):
Exactly, it's like a potential double hit Higher
costs and fewer houses beingbuilt.
Speaker 1 (04:54):
Man?
And what about the buildersthemselves?
Alex Yost mentioned supplychain worries too, didn't he?
Speaker 2 (04:59):
He did Really practical stuff, like if he
can't get cabinets on timebecause they're held up Right
and every month of delay meansextra cost, often for the client
who might be paying fortemporary housing.
It's not just numbers, itaffects people's lives directly.
Speaker 1 (05:14):
Yeah, that's a really crucial point.
Yeah, ok, so that's theconstruction side feeling the
pinch Increased costs, supplychain jitters, uncertainty.
Speaker 2 (05:22):
Pretty much sums it up.
Now let's maybe zoom out.
The KPRC2 report gives us thatwider economic context.
Ok, shifting gears.
Cprc2 report gives us thatwider economic context.
Speaker 1 (05:30):
OK, shifting gears.
So President Trump announced apause on some tariffs, but this
is important, not on China.
Speaker 2 (05:37):
Correct.
That's a key distinction.
The pause didn't cover China.
In fact, the report saidtariffs on some Chinese goods
actually went up.
Speaker 1 (05:44):
Right Got it and they had that analyst, mark Hamrick
from Bankrate.
Speaker 2 (05:47):
Yes, his insights were interesting.
He suggested the reason forpulling back on some of the
other planned tariffs might havebeen worries about a potential
burgeoning financial crisis.
Speaker 1 (05:58):
A crisis, wow.
What indicated that?
Speaker 2 (05:59):
He pointed to the bond market.
You know, when certain bondyields spike, like the 10-year
treasury, it can signalinvestors are getting nervous,
maybe foresee economic troubleahead.
That likely got policymakers'attention.
Speaker 1 (06:11):
Okay.
So even with that partial stepback, the tariff situation isn't
exactly resolved.
Speaker 2 (06:16):
Not at all.
Kprc emphasized thatsignificant tariffs are still
very much in place those higherChina tariffs, potential auto
tariffs, auto parts tariffs,even maybe pharmaceuticals down
the line.
Speaker 1 (06:27):
And they mentioned a number $300 billion worth of
import taxes still potentiallykicking in.
Speaker 2 (06:33):
Yeah, it gives you a sense of the scale.
It's huge.
We're still looking at baselinea 10% tax increase via tariffs
on a lot of goods, plus that 25%on certain Chinese items.
Speaker 1 (06:43):
Which ultimately could mean higher prices for us,
the consumers.
Speaker 2 (06:46):
That's the potential outcome.
Yes, across a whole range ofproducts.
Speaker 1 (06:49):
The report used Apple as an example, didn't it?
Because they rely so much onChina?
Speaker 2 (06:53):
They did, showed how their stock took a hit from the
trade tensions.
It illustrates how these bigpolicies ripple through major
companies, the stock market,investor confidence.
Speaker 1 (07:02):
So the main takeaway there is even pulling back
slightly didn't erase the risks.
Speaker 2 (07:08):
Pretty much Risks to the financial outlook economic
growth, inflation.
They're still there, maybe justheld off for a bit rather than
solved.
Speaker 1 (07:16):
And politically.
Kprc mentioned the uncertaintyaround the why right.
Is it negotiation?
Is it long-term policy?
Speaker 2 (07:23):
Hard to tell Exactly.
That unpredictability itself isa challenge for businesses
trying to plan, for investorstrying to gauge risks.
Speaker 1 (07:30):
So the market did rally a bit on the news of the
pause.
Speaker 2 (07:32):
It did, which probably had a lot of people
checking their 401ks.
Speaker 1 (07:37):
Yeah, probably, and Hamrick gave some advice for
investors in that situation.
Speaker 2 (07:41):
Pretty standard.
Solid advice really Forlong-term investors don't panic,
sell during dips.
It's notoriously hard to timethe market getting out and
getting back in right, stay thecourse.
Basically, if you're nearretirement, maybe double check
your asset mix.
Make sure it fits your timelineand risk tolerance.
Younger folks generally writeit out.
(08:01):
Time is on your side.
Speaker 1 (08:02):
Okay, so let's try and wrap this up.
Key takeaways for listeners.
Speaker 2 (08:06):
Well, first tariffs are definitely adding costs and
complexity to building a home.
Well, first tariffs aredefinitely adding costs and
complexity to building a home.
That likely means higher pricesfor new houses and maybe more
immediately felt for things likeappliances.
Speaker 1 (08:17):
Right, Even if the initial house price doesn't seem
directly hit, for some buyersthe total cost of setting up and
owning that home goes up.
Speaker 2 (08:25):
Exactly.
And second, the bigger tradepicture is still well, it's
murky.
Tensions, especially with China, persist.
Significant tariffs remain.
Potential for more exists.
Speaker 1 (08:38):
Which carries ongoing risks for the economy as a
whole Consumer prices, growth,all that.
Speaker 2 (08:43):
Yeah, so this stuff matters.
Whether you're buying a housetomorrow or just trying to
understand why things cost whatthey do, it's all connected.
Speaker 1 (08:50):
OK, so here's something to maybe chew on after
listening.
With all this uncertainty inglobal trade and how it clearly
hits home, what kind ofstrategies might people, or even
businesses, need to think aboutto navigate future bumps
related to tariffs and shakysupply chains?
Speaker 2 (09:04):
That's a really good question to ponder.
What does resilience look likein this environment?
Speaker 1 (09:08):
Definitely food for thought.
Thanks for joining us for thisdeep dive.
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