What do tariffs mean for the housing market in Alabama?
Owning a home is something many people dream of but it's something that costs a pretty penny.
With the recent tariff and trade war happening between the U.S. and other countries, the price of building a new home could increase.
According to the National Association of Home Builders, tariffs on Mexico and Canada could raise the cost of imported construction materials by more than $3 billion. The U.S. imports 30 percent of softwood lumber from Canada because there isn't enough for domestic capacity.
We spoke to the president of the Birmingham Association of Realtors about how tariffs could affect the real estate market in central Alabama. Patrick Warren says it's too early to tell.
"We'll see how things play out," said Warren.
This could cause a noticeable increase on new construction. If you're wondering if a new build or existing home is the right choice for you, have a conversation with your realtor.
鈥淩ight now for new construction, those builders probably already have their allotment of supplies needed for what they鈥檙e planning to build. I would assume there could be some affects down the line,鈥� said Warren.
The housing market has been steady for this area.
"In the Jefferson and Shelby County areas, we're about five percent on average sale price higher that what we were last year this time," he said.
That increase is not related to tariffs.
According to , the U.S. will ramp up domestic lumber production. The newly appointed agriculture secretary has been tasked with a 25 percent increase in timber production from federal lands.
The U.S. Forest Service has been directed to do the following:
- Increase timber outputs,
- Simplify permitting,
- Remove National Environmental Policy Act processes,
- Reduce implementation and contracting burdens, and
- Work directly with states, local government, and forest product producers to ensure that the Forest Service delivers a reliable and consistent supply of timber.
