Toro
Diamond Member
- Sep 29, 2005
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There is a shortage of homes for first-time home buyers. This is due, in part, to regulations imposed after the Global Financial Crisis that make it harder and more expensive to build houses. But Trump's trade taxes are also exacerbating the shortage as his trade taxes have added almost $10,000 to the cost of a home. One homebuilder I was talking with told me that the biggest demand is for homes below $300,000 where I live, but homebuilders can't make any profit at that price level, so they aren't building.
House building is an integral part of the US economy. The economy is doing well, but could be doing better without the extra taxes on homes.
House building is an integral part of the US economy. The economy is doing well, but could be doing better without the extra taxes on homes.
Homebuilders throughout the U.S. have seen stratospheric price increases on steel, aluminum, lumber and other core housing materials this summer due to tariffs imposed by the Trump administration, and experts say the industry is bracing for continued pain, as the president appears likely to move forward with a proposed tax on at least $200 billion worth of goods imported from China.
The tariffs put in place this spring on materials like steel and aluminum—the result of President Donald Trump’s hardline stance on international trade—have already added roughly $9,000 to the build cost of a new home, based on an average U.S. home price of $285,000, said Jerry Howard, CEO of the National Association of Home Builders. The Washington, D.C.-based organization represents more than 140,000 homebuilders and other industry workers.
Trump Tariffs Have Hit U.S. Home Builders Hard, But Luxury Market is Mostly UnscathedThe tariffs put in place this spring on materials like steel and aluminum—the result of President Donald Trump’s hardline stance on international trade—have already added roughly $9,000 to the build cost of a new home, based on an average U.S. home price of $285,000, said Jerry Howard, CEO of the National Association of Home Builders. The Washington, D.C.-based organization represents more than 140,000 homebuilders and other industry workers.