In a growing trade war, President Trump placed tariffs of up to 145% on Chinese goods and 10% baseline tariffs on all countries, raising fears of a significant economic downturn due to higher prices, stock market volatility, and diminished consumer confidence. For many U.S. consumers, that's playing out as a more cautious approach to spending, according to a recent survey commissioned by real estate brokerage platform Redfin.
The survey found that nearly one in four U.S. residents are canceling their plans to make a major purchase, such as a home or a car, because of the new tariff policies, and an additional 32% are delaying plans to make a major purchase. The survey also asked participants whether tariff policies are making them less likely or more likely to make a major purchase in 2025. In response, 55% said the new tariff policies made them less likely to jump in on a big spend.
The new tariffs are likely to impact the housing market in a number of ways. They have already sent mortgage rates on up-and-down swings, and they’re likely to significantly increase construction costs.
Tariffs and broader economic uncertainty are also pushing down homebuying demand and cutting into buyers’ budgets. A Redfin survey found that one in five prospective homebuyers expect to sell stocks to help fund their down payment; recent tariff-driven drops in the stock market could derail those plans for some buyers. Read more
