S
ince Trump's election, several major builders have expressed concerns that his proposals could harm their business. The higher tariffs on steel and aluminum, set to take effect next month, and new ones on Chinese goods could add thousands of dollars to home prices, industry executives say. Curt VanHyfte, CFO of Taylor Morrison, said the company expects some cost pressure from these tariffs, but it won't affect them until late 2025 if fully implemented.

    Lennar, another major homebuilder, made a "major shift" eight years ago away from materials manufactured in Asia during Trump's first-term trade war with China. Levies on Chinese electronics components used in residential construction could make the average property $5,000 to $7,000 more expensive, Lennar co-CEO Jon Jaffe said.

    Immigration policy changes would be "much more difficult to assess," Jaffe added. Some economists argue that tighter immigration enforcement slows construction, drives up home prices, and even fuels job losses among American-born workers in the industry. Home builders who spoke to NBC News said any dent to their heavily foreign-born workforce would be detrimental.

    Despite the unknowns weighing on the housing market, Redfin Chief Economist Daryl Fairweather advised buyers wary of high prices to consider new builds, adding that many developers are offering incentives. Inventories are picking up, but there's still only about 3.5 months' supply relative to current sales levels, far off the six-month level reflective of a balanced market.

    New homes for sale hit 481,000 – the most since 2007 – and speculative properties built without buyers lined up reached 385,000, the most since 2008. There are about 20% more existing single-family homes for sale now than a year ago, researchers said. Buyers who stay flexible can put themselves in a good position to act this year, Fairweather said.

    Real estate agents in some high-demand areas are voicing measured optimism. Bob Clarkson, a Century 21 agent in Atlanta, said interest is rising again, but "buyers are just picky." Makeba Evans, an Atlanta real estate agent who's recently begun focusing on sellers, said the price that sellers want for their homes is not rational, so it's taking a lot longer.

    Chicky Johnson, a Re/max agent serving the Chicago suburbs for over three decades, urged patience. "What I see is a shifting, but at the same time somewhat of a stabilization coming," she said, adding tariffs remain a wild card in her ability to put clients in new homes this year.