Tariff effects
With the upheaval of the Trump administration’s tariffs taking hold, the impacts are being felt across the housing market.
Over half of prospective home buyers said they are either holding off or outright scrapping their plans. As tariffs cause prices to rise and widespread uncertainty weakens job security and the stock market, fewer people are looking to make major purchases.
Check your home buying options. Start here
Homebuying plans put on ice
As the ever-changing Trump tariff policies unfold and prices rise, fewer U.S. consumers feel the financial stability needed to make big life decisions — like buying a home or car.
A 24% share of consumers surveyed said they cancelled their major purchase plans because of tariffs and another 32% said they put their plans on hold, according to Redfin. Meanwhile, 9% think they’re speeding up their major purchase plans and 8% already made one sooner than expected. The survey of 1,004 U.S. residents was conducted between April 10-14.
Separately, 55% of those surveyed said the Trump tariff policies made them less likely to make a major purchase in 2025 compared to 13% who said they’re more likely to do so. By political party, 79% of democrats were less likely versus 32% of republicans.
“Betting markets have the odds of a recession at higher than 50%, which is understandably making people wary of putting a big chunk of their money toward a house or a car,” said Chen Zhao, economics lead at Redfin. “Consumers are tightening their belts because they are rightly nervous about their job security and the prospect of paying more for everyday expenses. There are some potential silver linings for homebuyers: the drop in demand could cause home prices to stay flat, or even fall, and there’s some chance mortgage rates could drop in the next few months.”
This movement of pausing major purchases is already impacting home prices.
Redfin data from the four weeks ending April 13 showed the median home sales price increased 2.6% annually. At the end of 2024 and beginning of 2025, the annual rate of home price growth fell between 5% and 6%.
The analysis points to a double-edged sword of record-high housing costs and overall economic peril depressing home buyer demand.
“A lot of buyers, especially first-timers, are backing off because they’re nervous about a potential recession,” said Venus Martinez, a Redfin Premier agent. “Some house hunters are hanging out on the sidelines because they’re hopeful mortgage rates will come down soon. The buyers who are still active, typically those who need to move, are picky and unwilling to pay over asking price. And those buyers have the right strategy: Many of today’s sellers are willing to negotiate the price down.”
Further, Redfin’s report revealed about a third of consumers don’t have an emergency fund for mortgage or rent payments in case of financial turmoil, like losing their job. That splits to 23% of homeowners and 53% of renters. While experts recommend having enough saved to cover three months of housing costs, that’s unrealistic for many, especially as prices rise and wages don’t.
Check your home buying options. Start here
Advice for home buyers
Between the tariffs and all the other executive orders stirring chaos, making a major purchase can feel overwhelming.
It’s important to be comfortable with huge financial decisions and staying within your means. If you’re in the market for a home, get some expert advice, shop your mortgage rate around, and see if you qualify for down payment or closing cost assistance.
If you’re ready, reach out to a local mortgage lender and get started.
Time to make a move? Let us find the right mortgage for you
Written by: Paul Centopani