Survey Reveals: 72% of Americans Expect Housing Market Slowdown Amid US-Canada Trade Tensions

A REsimpli survey through Pollfish finds that 72% of Americans believe the US Housing Market will be hurt due to the implementation of Trump’s ‘Reciprocal Tariffs’, and the ongoing tension between US-Canada trade. 

This study analyzed 1,200 American citizens who are concerned with major political events and economic changes in the country currently, seeking their input on the trajectory of the country’s housing market.

Key Takeaways from This Study

• 72% of people believe that ‘Reciprocal Tariffs’ will hurt the US housing market
• 53.25% of people believe housing markets near the US-Canada borders will be most affected
• 33.75% of the respondents are highly concerned about the housing supply chains
• 66.42% of people believe that Canadian investors will pull back from the US
• 69.5% of people believe the liquidity of the US housing market will decrease
• 55.92% of people believe housing affordability will be negatively impacted
• 51.25% of people believe the US mortgage rates will increase
• 26.83% of people believe that homebuyers’ ability to secure loans and mortgages will be significantly affected
• 54.5% believe homebuyers will become more cautious
• 19.33% of the respondents would delay purchasing a home due to trade tensions
• 14.67% believe that the housing and real estate sector will be the most affected
• 52.08% of people believe that Property Taxes will increase in the US 

Why We Conducted This Study

Recent developments in international trade relations, particularly the implementation of reciprocal tariffs and growing tensions between the US and Canada, have raised questions about potential ripple effects across various economic sectors. 

According to recent reports from CNBC, implementing new tariffs on Canadian goods could significantly impact US consumers across multiple sectors. This comes as former President Trump has announced new “reciprocal tariffs” targeting Canada, Mexico, and China, potentially affecting everything from construction materials to home appliances.

With the housing market already unpredictable as it is, it is important to understand where the American population lies and get their opinions on certain issues. 

Key Findings

72% of people believe that ‘Reciprocal Tariffs’ will hurt the US housing market

72% of the people in the survey believe that Reciprocal Tariffs on global trade, especially on Canadian goods, will hurt the US housing market; and it can be further broken down into 24.75% of people believing there will be a significant impact and 47.25% believing there will be a slight impact.

Only 28% of the survey respondents believe that there will be no impact from the reciprocal tariffs on the US housing market.

53.25% of people believe that the housing market near the borders will be affected the most

The survey revealed that 53.25% of respondents believe housing markets in regions near the US-Canada border will experience more significant impacts than other areas.

This concern appears well-founded, as recent reporting from the Financial Post highlights growing anxiety in border communities about potential market disruptions.

46.75% of the respondents believe that the housing market near the border will not be affected more than other areas.

33.75% of Americans are very concerned about the trade war’s impact on housing supply chains

33.75% of people expressed a high level of concern that the trade war may have on the housing market supply chain.

The majority of respondents, 66.25%, expressed slight concern about the impact of trade tensions on housing supply chains. 

This aligns with recent reporting from KHOU, which suggests that tariffs could lead to higher construction costs and, consequently, increased home prices.

66.42% of Americans believe that Canadian Investors will pull back

One of the most striking findings reveals that 66.42% of respondents believe Canadian investors will pull back from U.S. housing markets due to Reciprocal Tariffs. 

However, 33.58% of people believe that will not be the case.

69.5% of people believe the housing market will become less liquid

69.50% expect the housing market to become less liquid during a trade war, suggesting a potential slowdown in property transactions.

On the contrary, 30.5% of people expect the housing market to become more liquid amidst a US-Canada trade war.

55.92% of people believe that there will be a negative impact on home affordability

The survey found that 55.92% of respondents expect negative impacts on long-term home affordability. 

This concern is echoed in recent coverage by USA Today, which examines how new tariffs could affect home prices and overall market accessibility.

44.08% of people, however, believe that there will be no impact on the housing market due to a potential trade war.

51.25% of people believe that mortgage rates will increase in the US

A majority of respondents, 51.25%, anticipate increases in mortgage rates if trade tensions escalate. 

The other half, 48.75% believe otherwise, and think that it will not be a determining factor for rising mortgage rates.

26.83% believe homebuyers will be significantly affected in securing loans and mortgages

26.83% of people believe that there will be a significant impact on homebuyers via their ability to secure mortgages and loans, due to the escalating tensions of the trade war.

Meanwhile, 73.17% believe the trade war will have at least some effect on homebuyers’ ability to secure loans or mortgages, though most expect the impact to be moderate rather than severe.

54.5% of people believe that homebuyers will become more cautious 

The survey indicates a notable shift in consumer sentiment, with 54.50% of respondents believing homebuyers will become more cautious during a trade war. 

On the other hand, the other 45.5% believe homebuyers will not change their perspective and maintain the same level of cautiousness.

19.33% of people would delay purchasing a home due to trade tension 

Considering only slightly more than half of the respondents said homebuyers would become more cautious, 19.33% of these respondents would delay purchasing a home with a US-Canada trade war. 

A staggering 80.67% indicated they would not delay purchasing a home due to trade war concerns.

14.67% of people believe that the housing and real estate sector will be most affected

14.67% of people believe that housing and real estate is the sector that will be the most affected by the implementation of Trump’s ‘Reciprocal Tariffs’.

The majority of the people, 43%, believe retail and consumer goods will be the most affected, whereas 8.92% believe that technology and electronics, 11.67%, believe that agriculture and farming, and, 21.75%, believe that manufacturing and industrial sector, will be the most affected.

52.08% of people believe that Property Taxes will increase in the US

The survey revealed that 52.08% of respondents believe reciprocal tariffs could lead to rising property taxes in the US, adding another layer of concern for current and prospective homeowners.

47.92% of people were against this belief and thought that it would not lead to rising property taxes.

Implications of Study

Our findings suggest that the potential impact of US-Canada trade tensions on the housing market could be more complex and far-reaching than initially anticipated. 

The combination of expected supply chain disruptions, changing investor behavior, and shifting consumer sentiment points to potential challenges ahead for the US housing market.

According to Financial Samurai’s analysis, while trade wars generally create market uncertainty, they could potentially lead to unexpected opportunities in certain housing market segments. 

However, the broader consensus among survey respondents suggests a more cautious outlook.

Looking Ahead

The data gathered from this survey can help gain an understanding of the sentiment people have moving forward about their country. 

People have expressed serious concern about the cautiousness the general homeowner will be burdened with, and how the respondents themselves will deal with it. 

The citizens of America are also concerned about the future of various marketplaces and the impact Reciprocal Tariffs will have on them, ranging from the technological industry to the real estate industry. 

People are also wary about the various implications on foreign investment into the country and US investments on foreign land, that will arise from these tariffs.

Methodology

The study surveyed 1,200 US residents who demonstrated awareness of major political events and economic changes since Donald Trump’s presidency. 

The survey was conducted using a comprehensive questionnaire covering various aspects of housing market dynamics, from personal buying intentions to broader market expectations.

All participants were pre-screened to ensure familiarity with current economic and political developments affecting US-Canada trade relations.

Limitations

As with any research, there are some limitations involved. While 1,200 people help to gain a keen insight, it does not cover the entirety of the range of opinions throughout the country.

Another limitation will be the range of foundational understanding people have of political changes and their connection to the various markets within the US and extending beyond its borders.  

Conclusion

These findings can help us understand the average American’s sentiment with current political and economic ongoings, helping professionals in every sector make knowledgeable choices moving forward.