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Tariffs and Real Estate in Louisiana: What Realtors and Homebuyers Need to Know in 2025

  • Writer: Best Title & Co.
    Best Title & Co.
  • May 19
  • 2 min read

Updated: May 20

In 2025, the real estate landscape in Louisiana is facing new challenges, and tariffs are among the biggest disruptors. Whether you're a seasoned realtor or a first-time homebuyer, understanding how tariffs are affecting the market and how to respond can give you an edge in a competitive environment.


How Tariffs Are Driving Up Housing Costs


Recent federal tariffs on imported materials are making construction more expensive across the U.S., and Louisiana is feeling the squeeze. Builders across the state report higher prices for essential materials like:


  • Lumber

  • Steel and aluminum

  • Appliances

  • Nails and fasteners


The National Association of Home Builders (NAHB) estimates that these tariffs are adding over $10,000 to the cost of building a single-family home. These costs are typically passed down to buyers, meaning homes are not only more expensive to build, but they're more expensive to buy.





The Local Impact in Louisiana


In Louisiana, especially in areas like New Orleans, Baton Rouge, and the Northshore, builders often rely on imported materials. According to the Homebuilders Association of Greater New Orleans, tariffs on Canadian lumber and imported steel have led to substantial cost increases.

This has a ripple effect:


  • New construction slows down, adding to inventory shortages

  • Home prices increase, making affordability even harder for many families

  • Appraisals may not keep up, complicating financing for buyers


According to Reuters, single-family housing starts and building permits declined again this spring, yet another signal of how tariffs are reshaping the market. These increased costs are contributing to a slowdown in new home construction, exacerbating the existing housing shortage in the region. With fewer new homes being built, competition for existing homes intensifies, driving up prices and making it more challenging for first-time buyers to enter the market. 


How Realtors and Buyers Can Navigate the Market


For Realtors:

  • Educate your clients. Explain how tariff-driven price increases may affect their home search and closing timeline.

  • Highlight long-term value. Emphasize the long-term value of homeownership, even in a challenging market. While prices may be higher, interest rates are still historically low.

  • Partner with experts. Work with experienced title companies like Best Title & Co., who stay ahead of policy changes and streamline closings.

  • Stay Informed: Keep abreast of policy changes and market trends to provide clients with the most accurate information.


For Homebuyers:

  • Budget with flexibility. Factor in higher material costs, closing fees, and potential delays due to supply chain issues.

  • Explore existing homes. With new construction down, existing inventory might offer better value.

  • Act early. Lock in mortgage rates and get pre-approved to avoid surprises in a shifting market.


How Best Title & Co. Can Help You Close With Confidence


As a Black woman–owned title company proudly serving South Louisiana, Best Title & Co. is more than just a closing partner; we’re a trusted guide in an evolving real estate market.


We stay on top of industry trends, like tariff impacts, to make sure our clients are informed and protected. From reviewing assessments to final signatures at the closing table, our team is here to support realtors and buyers every step of the way.


Looking for more insight? Contact us to learn how we can help you navigate 2025’s real estate landscape with clarity and confidence.

 
 
 

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