Trump's Tariffs Are Crushing the Housing Market -- and Families Are Paying the Price

A new Senate report reveals that Trump's reckless tariff policy has driven construction costs through the roof, killed 60,000 construction jobs, and slowed homebuilding to pandemic-era lows. While families struggle to afford housing, the administration's trade war is making the crisis worse by the day.

Construction Grinds to a Halt as Tariff Costs Soar

The Trump administration's chaotic tariff policy is strangling the U.S. housing market at the worst possible time, according to a damning new report from the Senate Joint Economic Committee.

The report, released by Ranking Member Senator Maggie Hassan (D-NH), documents how Trump's tariffs on steel, copper, and other building materials have sent construction costs skyrocketing -- driving builders to halt projects and leaving families facing an even more severe affordable housing shortage.

"The housing crisis hurts New Hampshire families, stretches budgets thin, and denies people the stability that owning their own home can provide -- and the President's reckless tariffs are only making matters worse," Hassan said in a statement accompanying the report.

The Numbers Tell a Brutal Story

The Committee's analysis paints a picture of an industry in crisis:

Material costs have exploded. Following Trump's tariffs on steel and copper, copper prices jumped 25 percent year-over-year by February 2026. Steel mill products -- including bars, wire, pipes, and plates essential to construction -- increased 21 percent over the same period.

Even basic home appliances are getting pricier. The most popular ovens at major retailers now cost an average of $70 more than a year ago -- a 9 percent increase that gets passed directly to homebuyers.

Construction has collapsed. By the end of Trump's first year back in office, the rate at which builders secured permits and broke ground on new homes had fallen below late 2024 levels. August 2025 saw the lowest residential permit issuance rate since May 2020 -- one of the darkest months of the pandemic construction slowdown.

Jobs are disappearing. The construction industry shed 60,000 jobs between December 2024 and February 2026 as projects stalled and builders cut back.

Builders Sound the Alarm

The Committee conducted extensive outreach to home builders, multifamily housing developers, and realtors across the country. Their message was unanimous: tariffs and the economic uncertainty created by Trump's erratic trade policy are making it nearly impossible to plan and execute construction projects.

When builders cannot predict material costs from one month to the next, they cannot bid accurately on projects or secure financing. The result is fewer homes built, higher prices for those that do get constructed, and a worsening shortage of affordable housing.

A Crisis Made Worse

The United States was already facing a severe shortage of affordable housing before Trump took office. Families across the country -- particularly in states like New Hampshire -- were struggling to find homes they could afford.

Trump's tariffs have taken a bad situation and made it catastrophically worse. By driving up the cost of construction materials, his policies ensure that fewer homes will be built precisely when the country needs more housing supply, not less.

This is economic policy as self-inflicted wound. Tariffs on steel and copper do not bring back manufacturing jobs or strengthen American industry. They simply make it more expensive to build the homes American families desperately need.

Who Benefits?

Certainly not American workers. The 60,000 lost construction jobs tell that story clearly enough.

Certainly not American families trying to buy their first home or find affordable rent.

The only winners in Trump's tariff game are the foreign competitors who can undercut American builders priced out of the market -- and the wealthy developers who can afford to wait out the chaos while smaller competitors go under.

What Comes Next

Senator Hassan has been working to expand the Low-Income Housing Tax Credit to increase affordable housing supply. In January, she visited a senior housing community in Newmarket, New Hampshire, that prioritizes low-income seniors -- exactly the kind of project that becomes harder to build under Trump's tariff regime.

But expanding tax credits cannot overcome the fundamental problem: when construction materials cost 20-25 percent more than they did a year ago, fewer projects pencil out financially. Developers cannot build their way out of a crisis when the administration keeps moving the goalposts on material costs.

The housing shortage was a solvable problem. It required increasing supply through smart policy, streamlined permitting, and support for builders. Instead, Trump chose trade war theatrics and economic chaos.

American families will pay the price -- in higher rents, unaffordable home prices, and the lost stability that homeownership provides -- for years to come.

The full Joint Economic Committee report is available on the Senate website for anyone who wants to see the detailed damage assessment. The numbers speak for themselves: Trump's tariffs are a disaster for housing, a disaster for construction workers, and a disaster for families trying to achieve the American dream of homeownership.