New Home Prices In Texas Rising Thanks To Tariffs

A lot of talk has been centered around the tariffs being handed down by President Trump and how it's going to affect certain things around the country. The question is how is it going to affect Texas?

Well, we aren't really immune to anything that isn't going to affect the country as a whole, and we can expect the prices on certain things to rise just like they will around the country as a whole.

Where Can We Expect Prices To Rise The Most

That's one of the biggest questions, and it's in an area that we probably wouldn't think about. It's also an area where the increase in price could ultimately price some Texans out from being able to do it.

The price of a new home in Texas is expected to be significantly impacted by the tariffs imposed, and it could price out someone who was already right on the verge of their budget.

How Much Will The Price Increase

According to an Austin American Statesman article, the National Association of Homebuilders stated the price of a new home build could rise by $9,200 on average.

That's a pretty significant jump, and those that were already sitting on the edge of their budget, it could press them right out of that home they've had their sights on building.

Why Would The Tariffs Impact It So Much

Yes, a lot of the supplies for a home build are from right here in the United States, and obviously those items won't be impacted. However, a fair amount of supplies used in building a home come from other countries.

An estimated 7% of the supplies used are imported, so the in order to get those supplies into the U.S., companies have to raise the price to compensate for that. The cost is then passed down to the customer.

Rising Home Prices In Texas

The worst part of all this is that the median price of a home has risen by nearly 40% during a stretch from 2019-2023, so it was already getting more expensive to buy a home in Texas. The tariffs will now raise that even more.

The state is struggling with not having enough homes to meet demand in certain areas, and this won't help as some builders may decide to back off from building until the tariffs are relaxed or lifted.