Latest news with #homeownership
CTV News
an hour ago
- Business
- CTV News
Habitat for Humanity New Brunswick, provincial government build new home for family
The Government of New Brunswick announced a new home built for a family in the Sackville district of Tantramar thanks to a partnership with Habitat for Humanity New Brunswick. The non-profit organization receives up to $100,000 per unit from the provincial government towards the construction of new homes, a news release from the province said. 'It's critical that we continue to find more pathways to home ownership,' said David Hickey, minister responsible for the New Brunswick Housing Corporation. 'By working with our partners in Habitat for Humanity, we're able to bolster medium-density housing options for those who need them.' The three-bedroom bungalow is the 22nd affordable home built by the partnership since 2023. 'It's a pleasure to work with the government of New Brunswick to make home ownership possible for families like this one,' said Perry Kendall, CEO of Habitat for Humanity New Brunswick. 'We know the need is great, and this partnership is an effective way to get people into safe, secure housing.' For more New Brunswick news, visit our dedicated provincial page.
CTV News
3 hours ago
- Business
- CTV News
Canada tariffs could add US$14,000 to the cost of building a U.S. home by 2027, report warns
Softwood lumber is used to frame and remodel the majority of homes in the US. Lumber tariffs could make it even harder for many Americans to afford a home. (David Paul Morris/Bloomberg/Getty Images/File via CNN Newsource) U.S. President Donald Trump's tariffs could have an unintended side effect: making homeownership even less affordable for many Americans. A new report from the Canadian Chamber of Commerce estimates that the average cost of building a U.S. home could rise by an additional US$14,000 by the end of 2027 if tariffs on Canadian imports remain in place, even as many experts estimate that America needs millions more affordable homes. In 2023 alone, Canada accounted for 69 per cent of U.S. lumber imports, 25 per cent of imported iron and steel and 18 per cent of copper imports, all key construction materials, the report said. In a statement, the White House pushed back on the assertion that tariffs would increase costs for Americans. 'The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers, but by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market,' White House spokesperson Kush Desai said. 'A new CEA (Council of Economic Advisors) analysis proves just that: prices of imported goods have actually fallen this year despite President Trump's historic tariffs.' Canada is the third-largest source of imports used in U.S. home construction, behind China and Mexico, according to the National Association of Home Builders, a U.S.-based trade group. Though the Canadian Chamber of Commerce report doesn't estimate the impact of duties on imports from China or Mexico, it underscores that Trump's tariff policy, intended to support American industry, may instead worsen housing affordability at a time when home prices hover near record highs and mortgage rates remain stubbornly elevated. Taking into account tariffs first imposed during Trump's first term, the total added cost from tariffs could reach US$20,000 per home by 2027, the Canadian Chamber of Commerce found. U.S.-Canada trade tensions Trade tensions between the U.S. and Canada have lately reached a fever pitch, with some Canadians threatening to boycott US-made goods and others selling their stateside vacation homes. Trump has announced new tariffs on Canada since taking office in January, including additional tariffs on imported Canadian softwood lumber, a key component used in the framing and remodeling of homes. Nearly US$13 billion — or roughly 7 per cent — of the estimated US$184 billion of goods that went into new single-family and multifamily construction in 2023 were imported, according to the NAHB. Lumber made up the majority of those imports at US$8.5 billion, the NAHB said — and 70 per cent of lumber imported specifically for US home construction came from Canada. Trump has changed the tariff rate he plans to impose on Canadian imports several times since taking office. Most recently, Trump announced plans to impose a 35 per cent tariff on Canadian goods that are not compliant with the US-Mexico-Canada Agreement (USMCA) starting August 1. Trump has also imposed a 50 per cent tax on all imported steel and aluminum and has threatened a 50 per cent tariff on all copper imports. Those tariff announcements have already hit the construction industry. According to an NAHB survey from April, 60 per cent of home builders were already seeing tariff-related price increases. However, not all home builders use imported materials, NAHB's chief economist, Rob Dietz, told CNN. 'It's important to note that about 40 per cent of the builders in our survey noted no cost effect,' he added. The Canadian Chamber of Commerce's report highlighted Texas, Florida and California as states that would likely feel price shocks most acutely, due to being heavily reliant on imported construction goods. Still, Dietz said many home builders have indicated that they're having difficulty pricing construction projects accurately due to tariff uncertainty.
CNN
8 hours ago
- Business
- CNN
Canada tariffs could add $14,000 to the cost of building a home by 2027, report warns
President Donald Trump's tariffs could have an unintended side effect: making homeownership even less affordable for many Americans. A new report from the Canadian Chamber of Commerce estimates that the average cost of building a US home could rise by an additional $14,000 by the end of 2027 if tariffs on Canadian imports remain in place, even as many experts estimate that America needs millions more affordable homes. In 2023 alone, Canada accounted for 69% of US lumber imports, 25% of imported iron and steel and 18% of copper imports, all key construction materials, the report said. In a statement, the White House pushed back on the assertion that tariffs would increase costs for Americans. 'The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers, but by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market,' White House spokesperson Kush Desai said. 'A new CEA (Council of Economic Advisors) analysis proves just that: prices of imported goods have actually fallen this year despite President Trump's historic tariffs.' Canada is the third-largest source of imports used in US home construction, behind China and Mexico, according to the National Association of Home Builders, a US-based trade group. Though the Canadian Chamber of Commerce report doesn't estimate the impact of duties on imports from China or Mexico, it underscores that Trump's tariff policy, intended to support American industry, may instead worsen housing affordability at a time when home prices hover near record highs and mortgage rates remain stubbornly elevated. Taking into account tariffs first imposed during Trump's first term, the total added cost from tariffs could reach $20,000 per home by 2027, the Canadian Chamber of Commerce found. Trade tensions between the US and Canada have lately reached a fever pitch, with some Canadians threatening to boycott US-made goods and others selling their stateside vacation homes. Trump has announced new tariffs on Canada since taking office in January, including additional tariffs on imported Canadian softwood lumber, a key component used in the framing and remodeling of homes. Nearly $13 billion — or roughly 7% — of the estimated $184 billion of goods that went into new single-family and multifamily construction in 2023 were imported, according to the NAHB. Lumber made up the majority of those imports at $8.5 billion, the NAHB said — and 70% of lumber imported specifically for US home construction came from Canada. Trump has changed the tariff rate he plans to impose on Canadian imports several times since taking office. Most recently, Trump announced plans to impose a 35% tariff on Canadian goods that are not compliant with the US-Mexico-Canada Agreement (USMCA) starting August 1. Trump has also imposed a 50% tax on all imported steel and aluminum and has threatened a 50% tariff on all copper imports. Those tariff announcements have already hit the construction industry. According to an NAHB survey from April, 60% of home builders were already seeing tariff-related price increases. However, not all home builders use imported materials, NAHB's chief economist, Rob Dietz, told CNN. 'It's important to note that about 40% of the builders in our survey noted no cost effect,' he added. The Canadian Chamber of Commerce's report highlighted Texas, Florida and California as states that would likely feel price shocks most acutely, due to being heavily reliant on imported construction goods. Still, Dietz said many home builders have indicated that they're having difficulty pricing construction projects accurately due to tariff uncertainty.
Forbes
8 hours ago
- Business
- Forbes
Rising Insurance Costs Make Buying A First Home Even Harder
Skyrocketing home insurance costs are extra challenging for first-time buyers. It used to be said that owning a home protected you from unpredictable costs like rent hikes. It added stability to your life and finances. Is this still true? Have skyrocketing home insurance costs eliminated the predictability and stability of homeownership? Have they contributed to the crisis of young couples unable to buy homes and start their families? These costs have definitely been a contributing factor, according to industry observers. Insurance Adding to First Time Buyer Challenges 'First-time home buyers have dropped to the lowest level recorded in more than four decades,' shares the National Association of Realtors' economist Jessica Lautz. Insurance is one pain point among others, including higher mortgage rates, HOA fees, energy costs and home prices themselves, she notes. Inflation is impacting all aspects of homeownership. Lautz points to a 2024 NAR homebuying study that details home insurance costs. 'Over the past decade, while consumer prices have risen by approximately 30%, homeowners' insurance costs have surged by more than 50%,' it notes. The high cost of housing and increased prices for everything related to homeownership, including insurance, is causing couples to delay starting families and impacts their physical as well as fiscal, health. 'Bringing housing costs to an affordable level can make all the difference in the life — and future — of a family,' according to one of many studies on the topic, this one by Habitat for Humanity. 'Homeowners insurance is yet one more hurdle to affordability,' observes Down Payment Resource CEO Rob Chrane. 'Like interest rates, it affects how much you can borrow, reducing the price range of homes you can afford,' he adds. The uncertainty around the cost of insurance your prospective home can be more damaging than the sticker shock of home prices. 'An unexpected $1,000 to $2,000 increase for homeowners insurance can suddenly upend your budget,' he shares, noting, 'In specific markets, we've encountered situations where the monthly escrow payment for insurance alone surpasses the loan's principal and interest payment.' High interest rates are still the bigger psychological hurdle, Chrane notes, shaping what buyers think they can afford. 'But insurance costs are quickly catching up. Again, uncertainty plays a role. Interest rates are visible up front, while insurance costs come up later in the process, surprising some buyers and throwing them off track at the worst moment.' Scope of the Problem 'According to LendingTree's 2025 State of Home Insurance Report: 'Home insurance rates have spiked 40.4% in the past six years, with the last two years seeing double-digit increases.' Rates were fairly stable from 2019 to 2021, then surged afterward. 'This is a relatively new trend,' notes licensed insurance expert and LendingTree contributor Rob Bhatt. 'Up until a few years ago, homeowners insurance was usually an afterthought in the homebuying process. Many homebuyers now need to think about home insurance earlier on in the process than before.' Location, Location, Location It's reasonable to expect that states like California, Florida and Texas, with their headline-grabbing disasters, would be the front runners for insurance hikes. However, as Chrane observes, other forces contribute to rising premiums, including regulatory challenges and insurer exits. Disaster-prone states have also set up their own insurer-of-last-resort programs for regions where homeowners can't find policies. Bhatt points to California's as an example. 'Even if your insurance company doesn't raise your normal home insurance rate, you may receive an extra charge to help cover the FAIR Plan's expenses.' He also notes that California's insurance commissioner has given conditional approval for State Farm's temporary rate hikes to become permanent. 'I imagine other companies have filed, or will file, for rate increases to keep up with the rising costs of insuring homes in California,' he predicts. The latest natural disaster to hit homeowners was the Texas hill country flash floods from earlier this month. Bhatt doesn't expect them to hike rates for one simple reason: 'Homeowners insurance doesn't cover floods.' At the same time, the insurance expert notes that insurers tend to avoid homes in elevated risk areas. 'Considering the extent of the damage, I suspect that some insurance companies may be less willing to insure homes in these affected areas than they have in the past. Some may continue insuring homes in the affected areas but charge higher rates.' He also notes that the flooding may rewrite flood zone maps, which can impact both the costs and availability of coverage. 2026 Prediction Bhatt sees signs of stabilization. 'We may be entering a normal pattern where rates only increase slightly from year to year or even come down. This, in turn, may provide some relief to homeowners and home buyers.' However, he cautions, life can be unpredictable. Buyer Tips The LendingTree pro suggests shopping around for a lower rate and considering a higher deductible to save money. He also notes that 'It's good to avoid filing claims for relatively minor repairs. Insurance companies usually raise your rates after a claim of any size. If you have two or more claims within a short amount of time, your insurance company may drop you.' It's better to payout of your pocket for damage of a couple thousand or less, he cautions. 'In the long run, you're usually better off saving insurance for large expenses you wouldn't otherwise be able to afford.' You can also save on your premiums by making your home more disaster resistant, he notes. I've written about the Fortified hurricane and Wildfire Prepared Home programs. Even if you don't go for a full certification, you can let your insurer know about specific changes you've implemented to potentially save on your insurance coverage. Chrane urges buyers to research down payment assistance programs like his to lessen their financial burden. 'Once their budget is set,' he suggests, 'they should talk with home insurance agents and compare quotes because premiums can differ by hundreds or even thousands of dollars annually for the same coverage.' Lautz agrees that prospective buyers should be researching down payment assistance programs and considering overlooked neighborhoods.
CNN
9 hours ago
- Business
- CNN
Canada tariffs could add $14,000 to the cost of building a home by 2027, report warns
President Donald Trump's tariffs could have an unintended side effect: making homeownership even less affordable for many Americans. A new report from the Canadian Chamber of Commerce estimates that the average cost of building a US home could rise by an additional $14,000 by the end of 2027 if tariffs on Canadian imports remain in place, even as many experts estimate that America needs millions more affordable homes. In 2023 alone, Canada accounted for 69% of US lumber imports, 25% of imported iron and steel and 18% of copper imports, all key construction materials, the report said. In a statement, the White House pushed back on the assertion that tariffs would increase costs for Americans. 'The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers, but by foreign exporters who rely on access to the American economy, the world's biggest and best consumer market,' White House spokesperson Kush Desai said. 'A new CEA (Council of Economic Advisors) analysis proves just that: prices of imported goods have actually fallen this year despite President Trump's historic tariffs.' Canada is the third-largest source of imports used in US home construction, behind China and Mexico, according to the National Association of Home Builders, a US-based trade group. Though the Canadian Chamber of Commerce report doesn't estimate the impact of duties on imports from China or Mexico, it underscores that Trump's tariff policy, intended to support American industry, may instead worsen housing affordability at a time when home prices hover near record highs and mortgage rates remain stubbornly elevated. Taking into account tariffs first imposed during Trump's first term, the total added cost from tariffs could reach $20,000 per home by 2027, the Canadian Chamber of Commerce found. Trade tensions between the US and Canada have lately reached a fever pitch, with some Canadians threatening to boycott US-made goods and others selling their stateside vacation homes. Trump has announced new tariffs on Canada since taking office in January, including additional tariffs on imported Canadian softwood lumber, a key component used in the framing and remodeling of homes. Nearly $13 billion — or roughly 7% — of the estimated $184 billion of goods that went into new single-family and multifamily construction in 2023 were imported, according to the NAHB. Lumber made up the majority of those imports at $8.5 billion, the NAHB said — and 70% of lumber imported specifically for US home construction came from Canada. Trump has changed the tariff rate he plans to impose on Canadian imports several times since taking office. Most recently, Trump announced plans to impose a 35% tariff on Canadian goods that are not compliant with the US-Mexico-Canada Agreement (USMCA) starting August 1. Trump has also imposed a 50% tax on all imported steel and aluminum and has threatened a 50% tariff on all copper imports. Those tariff announcements have already hit the construction industry. According to an NAHB survey from April, 60% of home builders were already seeing tariff-related price increases. However, not all home builders use imported materials, NAHB's chief economist, Rob Dietz, told CNN. 'It's important to note that about 40% of the builders in our survey noted no cost effect,' he added. The Canadian Chamber of Commerce's report highlighted Texas, Florida and California as states that would likely feel price shocks most acutely, due to being heavily reliant on imported construction goods. Still, Dietz said many home builders have indicated that they're having difficulty pricing construction projects accurately due to tariff uncertainty.
