YOUR HOME.

New research from the Federal Reserve Bank of Chicago is drawing attention to how 2025 tariffs moved through industries connected to housing. Electrical appliances and components experienced nearly a 3% increase in input costs, furniture and related products were close to 2.5%, and construction experienced an increase of about 1.5%. The researchers also found no clear short-term employment boost that offset those higher costs. That matters whether you're buying, selling, renovating, building or managing an investment property.

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YOUR HOME IS MORE THAN FOUR WALLS

Think about everything that goes into a home:

HVAC SYSTEMS • APPLIANCES • LIGHTING • ELECTRICAL COMPONENTS • CABINETRY • FURNITURE • FIXTURES • BUILDING MATERIALS

When the cost of those inputs rises, someone ultimately has to absorb that increase. Sometimes it's the manufacturer. Sometimes it's the contractor. Sometimes it's the builder. And eventually, some of that cost can make its way to the consumer.

The National Association of Home Builders reported in August that 72.9% of builders surveyed said material costs for the same home had increased over the previous year, with the median increase at 6.7%. Smaller builders were hit particularly hard: builders who started five or fewer homes in 2025 reported a median material-cost increase of 9.1%, compared with 1.8% for builders with 100 or more starts.

That's a big deal for housing affordability.

WHAT DOES THIS MEAN FOR GEORGIA HOMEOWNERS?

Georgia homeowners aren't necessarily going to receive a bill labeled “TARIFF SURCHARGE.” The impact can be much more subtle. You may see it when:

• Your contractor's estimate is higher than expected
• A replacement HVAC system costs more
• Appliances cost more during a renovation
• Cabinet or furniture prices increase
• A renovation budget needs to be adjusted
• A new construction contract comes in higher than anticipated

And when construction costs rise, replacement and improvement costs rise with them. That can affect how homeowners think about the value of their property.

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BUYING A HOME? LOOK BEYOND THE PURCHASE PRICE.

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BUILDING OR RENOVATING? BUDGET DIFFERENTLY.

For homeowners planning a major renovation or new construction project, today's environment calls for more than a simple contractor estimate. Consider:

PRICE ESCALATION

Could material prices change between the estimate and the completion date?

TIMING

Could supply issues delay your project?

CONTRACT TERMS

Who is responsible if material costs change?

CONTINGENCY

Have you built enough room into your budget for unexpected increases?

MATERIAL SELECTION

Are there comparable alternatives that can protect your budget without sacrificing quality? The NAHB estimates that about 7% of goods used in new residential construction originate from foreign nations, demonstrating that even predominantly domestic construction remains conneted to global supply chains.

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AND IF YOU'RE A REAL ESTATE INVESTOR… PAY ATTENTION.

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THE BMB TAKE

Tariffs aren't simply an economic headline. They can become a real estate issue when higher costs affect the price of building, renovating, maintaining and furnishing a home. The answer isn't to panic. It's to plan better. If you're thinking about buying a home, renovating, building new construction or turning a property into an investment, don't look at the purchase price alone. Look at the entire picture. Because the smartest real estate decisions aren't based on what something costs today.They're based on understanding what it could cost you tomorrow.

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IS YOUR PROPERTY READY FOR WHAT'S NEXT?

Whether you're considering SELLING, BUYING, INVESTING OR BUILDING, Brown Meyers Brokers can help you look beyond the transaction and develop a strategy around the property. KNOW THE NUMBERS. KNOW THE MARKET. KNOW YOUR NEXT MOVE.

 

Brown Meyers Brokers

SELL. BUY. INVEST. BUILD.

More Than Real Estate. Built for What's Next.

Disclaimer: This article is intended for general educational purposes and does not constitute financial, tax, legal or investment advice. Material costs and real estate conditions vary by market, property and project.