Hidden taxes: The housing affordability crisis is math, not politics

This week’s State of the Union address showed that the nation’s inflation rate is headed in the right direction: in 2022, it was 8.0%; in 2023, it was 4.1%; in 2024, it was 2.9%; and in 2025, it was 2.7%. The first year of the Trump administration also saw extension of his 2017 tax cuts, no tax on tips and overtime, and a long-awaited crackdown on crime and illegal immigration. It is good news, and there is more work to do. Perhaps examining “hidden taxes” in policy is a good place for the next steps.

In the latest Carolina Journal Poll out on Thursday, more than 74% of Republican primary voters say taxes are still too high in our state. For those neighbors earning between $40,000 and $70,000 annually, the number who believe this jumps to 87%. There is no doubt about it, North Carolinians are feeling squeezed by the rising cost of everything: taxes, consumer goods, and housing.  

Since our families already feel overtaxed, it’s worth asking whether tariffs function as another hidden tax, especially on housing.

According to the National Association of Home Builders, tariffs have caused construction costs to spike, slowed supply chains, and led to general uncertainty that stifles the pricing process. When builders can’t predict the cost of steel, aluminum, copper, cabinets, or lumber, they price in risk. That risk gets passed on to buyers.

The Associated General Contractors of America and the Home Furnishings Association say that even with the recent US Supreme Court decision striking tariffs down, housing and household goods pricing may not recede because Section 232 and 301 tariffs remain in effect.

“It is also worth noting that the Supreme Court decision does not impact certain materials-specific tariffs on products like lumber, steel, aluminum, and products containing copper — all of which will remain in place and all of which are major components for most commercial construction projects,” Brian Turmail, vice president of public affairs and workforce for the AGCA, told Realtor.com.

This is literally a kitchen table issue. Housing and home goods markets aren’t just factoring the tariff itself into their prices; they are factoring in the uncertainty. Can they keep their payroll needs met and the lights on in their factories? Can they keep supplies and raw material flowing?

“With the nation facing a housing affordability crisis, NAHB urges the president to exempt building materials as part of his tariff strategy because they raise construction costs, impede supply chains, and result in market and business uncertainty that make it difficult for builders to price their homes,” said Bill Owens, chairman of the National Association of Home Builders. “NAHB will continue to work with the administration and Congress to remove regulatory obstacles that hinder the construction of new homes and apartments.”

In this week’s CJ Poll, 79% of GOP primary voters approve of tariffs. But only 46% believe US consumers pay for them, w hile 37% think foreign countries/businesses pay. If foreign countries were absorbing most of the cost, builders wouldn’t be asking for exemptions.

It’s time to listen to those who have been building our homes, stocking our shelves, and making the American quality of life the envy of the world. When input costs ago up and construction margins are already thin, the material costs fall to consumers, and entry-level buyers are squeezed out. It is a chain reaction that hurts everyone. Tariffs don’t have to dramatically move prices to put housing and household goods out of reach; just a nudge makes then less affordable for someone in that chain, impacting us all.

Things like lumber, cabinets, copper, steel, and furniture are what make our day-to-day lives run. It is not political; it is real and local. North Carolina added 145,000 residents last year, ranking third in total population increase according to the latest US Census Bureau estimates. Population growth is driving housing demand as supply-side costs increase and compound an already strained housing market. This pushes new and mid-level homebuyers out of the buyers’ seat.

Even if tariffs are politically popular for the GOP, industry data and builder testimony suggest they exacerbate, not alleviate, the affordability crisis. Regardless of what party controls the White House or what administration implements a tax, hidden or not, the impact is the same — life becomes less affordable for us and our neighbors.

The goals of this administration are clear and transformative: disrupt the swamp, strengthen American industry, and put American workers first. Willingness to fine-tune the details ensures that such a movement is built to last. Revisiting policies that may unintentionally burden working families reflects strength, not surrender. At the end of the day, this isn’t about party loyalty, it’s about whether our neighbors and children truly share in the prosperity that sound policies can deliver.

“Hidden taxes: The housing affordability crisis is math, not politics” was originally published on www.carolinajournal.com.