Why Now is the Time to Buy New Construction in Southwest Florida: A Look at Rising Costs and the Impact of Tariffs

Why Now is the Time to Buy New Construction in Southwest Florida: A Look at Rising Costs and the Impact of Tariffs

With tariffs going into effect and plenty of inventory available in Southwest Florida, now may be the best time to buy new construction and lock in lower prices. As the homebuilding market braces for impact, many expect the cost of new homes to rise dramatically in the near future.

Let’s take a closer look at the factors driving these price increases, and why buying now could save you thousands in the long run.

Tariffs and Immigration Policy: How They’re Impacting Builders

The combination of tariffs and immigration policy is expected to significantly affect builders across the country, especially in markets like SW Florida. Builders are predicting that new construction prices will soar as a result due to increased expenses. So, what exactly will drive these price hikes?

The Three Major Drivers of Price Increases

1. Material Costs: Material costs are projected to rise due to tariffs and inflation. This will impact everything from Canadian lumber and appliances from overseas to locally sourced building materials. As the cost of materials continues to climb, builders will have no choice but to pass these increases along to homebuyers.

2. Labor Costs: Labor shortages are expected, which will further drive up the cost of skilled labor. With fewer workers available, builders will face longer build times and higher expenses for labor.

3. Equipment Costs: Inflation is also driving up the cost of construction equipment, which adds another layer of expense for builders. Whether it's machinery or tools required for construction, the higher costs associated with equipment will add to the costs of new construction.

Is Now the Best Time to Buy?

While no one can predict the future with certainty, one thing is clear: costs for builders are on the rise.

If you're looking to buy a new home, especially one that is already built, now is a great time to act. There’s plenty of inventory on the market, and with larger builders offering incentives and smaller builders eager to offload completed homes, buyers have the upper hand.

Purchasing a new home now, before prices increase, could mean significant savings. The combination of existing inventory and builder incentives make this moment one of the best times in recent history to buy new construction.

Want to Learn More?

If you’re thinking about buying a home or want to talk more about the real estate market, feel free to reach out. I’m here to help you navigate this changing market and find the best opportunities.

Josh Bohling
LPT Realty

Data and information provided by USA Today,  Real Estate News