How New Tariffs Could Impact the Housing Market in WNC — What Buyers and Sellers Should Know
As new federal tariffs on imported goods take effect, many in Western North Carolina are beginning to wonder what this means for our local housing market. The new measures, which target materials like steel, aluminum, and a variety of construction-related goods, have the potential to reshape the real estate landscape in ways that affect both buyers and sellers. Here’s what we know so far and how we think it might play out.
What the New Tariffs Target
The most recent round of tariffs focuses on imported materials critical to construction: steel rebar, aluminum framing, electrical wiring, and other essential building components. As builders pay more for these materials, those increased costs are likely to be passed on to homebuyers—particularly those purchasing new construction homes.
How It May Affect Buyers in WNC
In areas like Asheville, Black Mountain, and surrounding Buncombe County communities, where housing demand has consistently outpaced supply, even small increases in new home prices can impact buyer behavior. Rising construction costs may push buyers away from new builds and toward existing homes, increasing competition in the resale market. For buyers who have been waiting for more inventory or lower rates, these new economic pressures may create urgency—especially if interest rates begin to creep up again in response to inflationary concerns.
In short: buyers may face more competition, limited new construction inventory, and slightly higher home prices in the months to come.
What It Means for Sellers
For sellers of existing homes, the tariffs may actually offer a short-term advantage. If the cost of new construction climbs, resale homes become relatively more attractive. This could lead to more showings, quicker offers, and, in some cases, stronger sales prices. However, if tariffs contribute to broader economic uncertainty or dampen buyer confidence, sellers may need to be strategic—ensuring homes are priced appropriately and marketed effectively to stand out.
In WNC's more rural communities, where new construction isn't as prevalent, the impact may be less pronounced. But in fast-growing areas like Weaverville, Arden, and Fletcher, where new builds are an increasing share of the market, the shift could be more noticeable.
A Look Back: Lessons from Past Tariffs
When similar tariffs were introduced in 2018, builders across the country reported spikes in material costs and delays in construction. According to the National Association of Home Builders, those tariffs added $1,000 to $3,000 to the price of a new single-family home. The result? Fewer new homes on the market and more competition for existing ones.
We saw a similar pattern here in WNC, where resale inventory tightened and prices crept upward. With our region's unique mix of retirees, second-home buyers, and remote workers, even subtle shifts in national policy can have a noticeable effect on local dynamics.
What Buyers and Sellers Can Do Now
Buyers: Stay flexible, get pre-approved, and be ready to move when you find the right home. If you were considering new construction, it may be wise to explore existing homes as well.
Sellers: This may be a great time to list, especially if your home is move-in ready and well-maintained. Pricing remains crucial—buyers are savvy, and overpriced homes may linger on the market despite high demand.
At Jason Land Realty, we understand how national headlines can impact local markets. That’s why we keep a close eye on economic shifts like this one and help our clients navigate them with clarity and confidence. Whether you're looking to buy, sell, or simply stay informed, we're here to help guide you home.
Questions about what these changes mean for your situation? Reach out today — we’d love to chat.
