Tariffs, Lumber, and the Case for Buying a "Nearly New" Home

Tariffs, Lumber, and the Case for Buying a "Nearly New" Home

In a surprise policy shift, tariffs on Canadian lumber are set to double—an announcement that has already sent ripples through the housing market and caused a sharp decline in homebuilder stocks. As this new development unfolds, homebuyers and investors alike are bracing for what could be a significant rise in construction costs, particularly for new builds.

The expected impact? A projected 20% increase in the cost of building a new home—a figure that could materialize as early as Q1 if no renegotiated deal is struck. The strategy behind the tariffs is being tied to a broader push for “fair trade” and more balanced international agreements. While some are sounding the alarm, predicting steep price hikes and affordability issues, others believe a more reciprocal trade agreement could be reached that might soften the blow.

What Does This Mean for Buyers?

For anyone in the market for a new home, this sudden shift could be a game-changer. Rising construction costs are likely to push up prices across the board, making brand-new homes significantly less accessible to the average buyer. However, there's a silver lining that savvy buyers are already starting to notice: the opportunity to purchase a “nearly new” home—one that’s just a few years old—at a substantial discount compared to building from scratch.

On average, buyers can save up to $80,000 by choosing a home that’s already been built and lightly lived in. That savings often comes in the form of included landscaping, interior upgrades, window treatments, appliances, and more—items that can quickly add tens of thousands of dollars to the cost of a new construction home. Many of these upgrades are already done and paid for in a resale home, making it a far more budget-friendly option.

Why “Nearly New” Makes Sense in Today’s Market

Beyond the immediate cost savings, nearly new homes offer several additional advantages:

• Faster Move-In: No long construction timelines or uncertainty—most are move-in ready.

• Established Communities: Enjoy completed roads, landscaping, and nearby amenities.

• Proven Quality: The home has had time to “settle,” so post-construction surprises are less likely.

• Upgrades Included: Many original owners invest heavily in custom touches that buyers now get without the price tag.

In a market that’s increasingly volatile, buying smart is more important than ever. While brand-new homes have their appeal, the current economic and political landscape is making existing homes—especially newer ones—an increasingly attractive option.

If you're thinking of buying in the coming months, this tariff news might be your sign to act sooner rather than later—or to widen your search criteria to include homes that are just a few years old. Your wallet might thank you.

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