Madison could see a significant hike in housing costs as a result of President Donald Trump’s steep tariffs on Canada and Mexico, the Wisconsin State Journal reports.
The 25% tariffs on each of those countries — in addition to an added 10% tariff on Chinese products — took effect Tuesday after a monthlong delay. Trump has also promised a 25% tariff on all steel and aluminum imports later this month.
While the extent of local impacts remains to be seen, increases in building material costs or availability issues “may significantly raise the cost of new housing in a region where costs are already high,” according to Matt Wachter, Madison’s director of planning, community, and economic development.
In a Jan. 31 letter asking Trump to exempt building materials from the new tariffs, Carl Harris of the National Association of Home Builders said that roughly 25% of U.S. building materials imports come from Canada and Mexico, and “imposing additional tariffs on these imports will lead to higher material costs, which will ultimately be passed on to homebuyers in the form of increased housing prices.”
Madison is Wisconsin’s fastest-growing city and over the last decade has already seen the average rent for an 880-square-foot apartment rise by one third and the value of an average single-family home nearly double. The city is also expecting a population increase of around 100,000 people by 2050. Rising demand combined with a lack of availability have fueled an ongoing housing crisis.
