Taunton, mass. – Housekeepers in Massachusetts observe newly enacted tariffs for goods from Canada and Mexico that are concerned, the higher costs for importing products such as wood and drywall will drive the costs for the construction or redesign of a house in an already challenging real estate market.
“It's a bit of volatile,” said architect Michael Chavez about Boston 25 News. “You know, we are not quite sure what would expect me.”
Chavez builds a trio of 2-bath town halls in Taunton. It is expected that the houses in the low 500,000 US dollars are cheap, but Chavez said that an increase in the cost of building materials could lead to a higher sales price if the units came onto the market in spring. A higher price would push the town houses from the range of some families.
“At the moment there is already a tariff of 14.5% for Canadian wood,” said Chavez. “An increase of 25% for Canadian wood would actually bring us closer to a 40% tariff.”
Companies that import goods often often pay a tariff or a tax for the products they bring to the USA. Economists say that companies often make the difference by passing on the costs for customs to consumers at the cash register.
“In general, economists are against tariffs that only introduce inefficiency,” said Lawrence Yun, chief economist of the National Association of Realors, or Nar.
Both the Nar and the National Association of Hausbauer or Nahb warn that higher tariffs will increase housing costs. Online says the Nahb that “the fight against tariffs is causing the affordability of living space due to the adverse effects”.
According to Nahb, 70% of all imported wood in the USA comes from Canada, and 71% of the plaster – used in drywall products – are imported from Mexico.
“Customs are used as tax on American builders, buyers and consumers,” says the Nahb.
Massachusetts already deals with high real estate prices and a lack of available houses. The website real.com estimates that the current median listing price in Boston is 949,000 US dollars, although prices can vary in the city and in the nearby cities.
In a recently carried out state study, it was found that 222,000 new houses will be needed in the next 10 years so that the state remains competitive and can reduce the costs.
Economists warn that the tariffs could at least temporarily be a setback to these efforts.
“For example, if we can increase steel production in the USA or if the state of Maine can expand the wooden yards, the overall effect may be lower,” Yun told Boston 25 News. “But in the short term it will definitely affect consumers.”
Even President Trump recognized that tariffs could lead the Americans to “pain”. In a social media contribution, the president wrote: “Will there be some pain? Yes, maybe (and maybe not!) But we will make America great again, and everything will be worth the price that needs to be paid. “
The White House claims that the tariffs will ultimately be good for the USA and consumers. The Trump government says that the tariffs will strengthen the US workstations by promoting investments in US production and production. Customs can also bring countries to the negotiating table, which leads to better trade agreements for the USA that ultimately lower prices.
But there are no guarantees. And for builders like Chavez, uncertainty is a large part of what is concerned.
“The numbers still fluctuate from pandemic,” said Chavez. “And now with tariffs it is even more difficult to find out exactly what will cost.”
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