Story perspectives

39% of Americans Hesitant to Buy Amid Tariff Concerns

4/19/2025

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Summary

Americans Hesitant to Purchase

A Redfin survey shows 39% of Americans are hesitant to make major purchases due to tariffs.
Economic uncertainty and rising mortgage rates, averaging 6.83%, are dampening homebuying demand.
In Utah, 55% of residents believe tariffs will harm the U.S. economy.

Summary

Builders Struggle Amid Tariffs

Housing starts declined 11.4% in March to 1.324 million, the lowest level since July 2024, driven by tariff concerns.
Single-family home starts fell to 940,000, marking the second month below one million since August 2024.
Builders face a 6.3% rise in material costs due to tariffs, adding approximately $10,900 per home.
Builder sentiment remains low at 40, despite a slight increase in mortgage rates.
60% of builders reported supplier price hikes, complicating pricing and business strategies.

History

Historical Context

Economic uncertainty today mirrors the 1970s stagflation, where rising costs and low consumer confidence stifled spending. As tariffs drive up material costs and mortgage rates rise, Americans hesitate to invest in major purchases, reflecting a historical pattern of cautious consumer behavior during economic instability.

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Americans Hesitant to Purchase

A Redfin survey shows 39% of Americans are hesitant to make major purchases due to tariffs.
Economic uncertainty and rising mortgage rates, averaging 6.83%, are dampening homebuying demand.
In Utah, 55% of residents believe tariffs will harm the U.S. economy.

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