As discussions about tariffs resurface in the news, many homebuyers and sellers are wondering how these economic shifts might impact the Dallas housing market over the next year. So here’s our take:
Unless there’s a major shift in government policy or a dramatic improvement in global supply chains, we expect home prices to continue climbing in 2025—not because demand is skyrocketing, but because the cost of building new homes is increasing. Tariffs on imported goods, especially construction materials, could significantly raise the cost of development, making it more expensive to bring new inventory to the market.
Even if interest rates remain steady (currently hovering around 6–7%), rising construction costs will likely prevent home prices from dropping the way many hopeful buyers are waiting for. This is especially true in Dallas, where demand continues to outpace supply due to strong population growth and steady job creation.
So, what does this mean for buyers?
Right now, we’re seeing two types of buyers:
- Those who are jumping back into the market, realizing prices probably won’t fall much—if at all.
- Those still waiting for the so-called bubble to pop.
But here’s the truth: a “drop” in prices is looking less and less likely. Tariffs are just one factor. Dallas remains one of the fastest-growing metroplexes in the country, and with that comes more competition, more demand, and ultimately, upward pressure on home values.
The Bottom Line
When you combine:
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Strong population growth 📈
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Limited housing inventory 🏘️
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Builders facing higher costs due to tariffs and labor shortages 💸
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And interest rates still above 6% 📊
…you’ve got a recipe for slowly rising home prices, not falling ones.
If you’re waiting for the perfect time to buy, it might be time to rethink your strategy. The market is shifting, but not necessarily in the direction many buyers had hoped.