Will Tariffs Make Buying a Home in 2025 More Challenging?
Rising Construction Costs Drive Up Prices
Industry estimates show tariffs have added roughly $9,000 to $11,000 to the cost of building a typical single-family home. That increase gets rolled into the final listing price, affecting both custom homes and large developments.
In Central Florida communities where new construction is booming, this has led to noticeable price jumps—and increased competition for more affordable resale homes.
Tariffs Are Also Slowing New Construction
Because building has become more expensive, many developers are slowing down. Some are scaling back on projects; others are postponing them altogether.
That means fewer new homes are entering the market. And with demand still high, buyers are competing more fiercely over a shrinking supply—especially in popular cities like Orlando, Lake Mary, and Sanford.
Interest Rates Add to the Challenge
As of May 2025, mortgage rates are hovering in the mid-6% range. Combined with tariff-inflated prices, monthly payments for buyers are significantly higher than they were just a couple of years ago.
Affordability is the new battleground—and smart buyers need a strategy.
How Buyers Can Win in This Market
Even in a more expensive market, opportunities still exist. Here’s how to put yourself in a strong position:
Look for resale homes: Existing properties often provide better value than new builds affected by tariffs.
Get pre-approved early: Know your exact budget and act fast when the right home comes along.
Work with a local expert: The right agent will know which areas offer the best value and where price hikes are still manageable.
Final Thoughts
Tariffs are shaping the 2025 housing market in real ways, but that doesn’t mean your dream of homeownership is out of reach. With a smart plan, local insights, and a bit of speed, you can still make a great move this year.
Call or text The Nadeau Team at (407) 544-4704 today.
Let’s find you a home that fits your future—even in a shifting market.
