25 News has been keeping Central Texans informed on how President Trump’s proposed tariffs could affect things locally.
According to local real estate broker Cory Duncan, the tariffs could affect lumber and dry wall prices — which could make home prices even higher.
In the South Fork Subdivision, there are numerous new homes that have just been built and several still under construction.
Duncan says those in the business are constantly monitoring the news on proposed tariffs.
"It's something we have to keep a close eye on — it has the potential to affect the market greatly," Duncan said.
71 percent of dry wall, or gypsum, products come from Mexico.
30 percent of softwood lumber consumed in the U.S. is imported largely from Canada.
Since President Trump has proposed a 25 percent tariff on both those countries, Duncan says this could mean even higher home prices.
"If we see an increase in costs, we’re going to see an output — whether for builders or home buyers it will cause an increase in housing prices," he said.
Duncan worries that could mean builders might slow down construction leading to a shortage in homes.
The National Association of Home Builders is asking the Trump administration to exempt building materials from the tariffs.
Duncan is hoping that happens because he notes one more negative effect tariffs could have on home buyers.
"Increased tariffs are inflationary so that could push up the mortgage rates, which makes it harder for first time home buyers to enter into a home," Duncan said.
25 News wants to know how President Trump’s proposed tariffs are impacting Central Texans — email us at newsroom@kxxv.com if you'd like to share your story.
