In Vermont, where every season brings unique real estate challenges—icy driveways in winter, mud-season delays in spring, and high demand in summer—home buyers and sellers already have plenty to navigate. But now, a new factor could shake things up: rising tariffs on key building materials.
Vermont’s real estate market isn’t like New York or Boston. We’re a small state, deeply connected to Canadian trade, with a slower-moving housing market and an economy built around local businesses, tourism, and second-home buyers. If tariffs on Canadian lumber, steel, and building materials continue to rise, Vermont may feel the impact more acutely than larger markets.
Vermont’s Dependence on Canadian Imports
Unlike other states, Vermont’s construction industry relies heavily on materials from Canada. The proposed 25% tariff on Canadian imports directly affects:
✅ Softwood Lumber: Canada supplies about 30% of U.S. softwood lumber, used in framing homes and renovations. With Vermont’s limited housing inventory, the rising costs could discourage new development, tightening the already competitive market.
✅ Gypsum (Drywall): A large percentage of drywall used in U.S. homes comes from Canada. With these new tariffs, buyers looking at new construction or renovations could see costs spike.
✅ Steel & Aluminum: While not as commonly sourced from Canada, Vermont builders still rely on Canadian suppliers for key materials like nails, beams, and fasteners.
What This Means for Vermont Buyers & Sellers
Vermont’s housing market moves differently than big cities. While other markets experience sharp drops in affordability due to rising costs, Vermont’s limited housing supply means buyers and sellers must adjust their strategies wisely.
If You’re Buying a Home in Vermont
🔹 Mortgage Rates Could Rise: Tariff-driven inflation could lead to higher interest rates, making home loans more expensive.
🔹 Less Competition = Opportunity: If rates rise, some buyers will exit the market, giving remaining buyers more negotiating power. Buying now and refinancing later could be a winning strategy.
🔹 Sellers Are Still in Control—For Now: Vermont inventory remains tight, so well-priced homes continue to sell fast.
➡️ Pro Tip: I recently worked with buyers who were up against multiple offers. Their bid wasn’t the highest, but I knew how to make their offer stand out in a way that resonated with the sellers. They landed their dream home—without overpaying.
If You’re Selling a Home in Vermont
🔹 New Homes Will Cost More to Build: Rising construction costs mean that existing homes could become even more valuable compared to new builds.
🔹 Buyers May Be More Price-Sensitive: With interest rates possibly climbing, overpricing your home could backfire.
🔹 Inventory is Still Low: Vermont is still a seller’s market, meaning new listings will attract buyers quickly—especially well-prepared ones.
➡️ Pro Tip: If you’re thinking about selling, now is the time to act before rates go up and buyer demand shifts. A well-priced home will draw serious buyers quickly in Vermont’s tight market.
If You’re a Homeowner or Investor
🔹 Plan Renovations Wisely: Rising material costs mean renovating may become more expensive. Consider energy-efficient updates or cosmetic refreshes that don’t require heavy construction.
🔹 Supply Chain Issues Could Delay Projects: If you’re working with contractors, order materials sooner rather than later to avoid delays.
What’s Next for Vermont’s Real Estate Market?
Despite economic uncertainty, Vermont real estate remains strong. Demand is high, and Vermont continues to attract buyers looking for a lifestyle shift. However, tariffs could make it harder to build and renovate—making smart buying and selling decisions even more important.
Want to discuss how these shifts might impact your real estate plans? Let’s chat. Whether you're buying, selling, or just strategizing, I’d love to help you navigate Vermont’s changing market.
📩 Email me at trishsawyer@nelandmark.com or call me at 802-233-0554.
About the Author: Trish Sawyer, Vermont Real Estate Expert
Trish Sawyer is a Central Vermont real estate specialist with deep local knowledge, a strategic mindset, and a passion for helping clients make informed real estate decisions. Whether navigating the nuances of Vermont’s unique market or crafting winning strategies for buyers and sellers, Trish is dedicated to ensuring a seamless and successful experience.
🏡 Thinking about buying or selling? Let’s create a plan that works for you. Reach out today to start the conversation!
📞 802-233-0554
📩 trishsawyer@nelandmark.com
