Tariffs could play a significant role in an already shaky housing market

Published On Mar 6, 2025, 7:00 AM

The article discusses how recent tariffs on Canadian lumber imports, now approaching 40%, are contributing to rising lumber prices, which have hit a two-and-a-half-year high. The tariffs are expected to increase construction costs, further exacerbating the challenges in the already unstable housing market. Homebuilders are concerned that these tariffs will make housing less affordable, as consumers will ultimately bear the costs through higher home prices. There are also worries expressed in the Federal Reserve's Beige Book regarding the negative impact of these tariffs on construction activity and material costs.