Key Details:
- According to a Redfin survey, 24% of Americans are canceling major purchases like a home or car due to tariffs, while 32% are delaying plans.
- More than half (55%) say they’re less likely to make a major purchase this year, and 34% don’t have an emergency fund to cover housing payments.
- Among renters, 53% lack an emergency fund—more than double the rate of homeowners (23%).
If you’ve noticed more buyers hitting pause on their home search, you’re not imagining things.
According to a Redfin survey, nearly 1 in 4 Americans are scrapping plans to make a major purchase, like a home or car. Another third are hitting the brakes, delaying big-ticket buys as that same economic uncertainty continues to ripple across the country.
While Redfin chalks that up to the latest round of tariffs announced by President Trump, the more likely reason is the uncertainty many are feeling regarding the housing market and overall economy.
For most consumers, news about tariffs isn’t the thing causing them to change their financial plans, at least not until they’re told by misleading headlines how those tariffs could negatively impact their finances, or until rising mortgage rates send them right back to the bench.
For now, tariffs are a convenient peg on which to hang consumer reservations about major purchases. But the truth is less…political.
Byron Lazine broke down the key takeaways from Redfin’s report on Monday’s Hot Sheet. Here’s what’s driving the hesitation—and what agents need to know to navigate this new landscape.
What’s Behind the Buyer Slowdown?
According to the Redfin-commissioned survey, conducted by Ipsos in mid-April 2025, tariff policies (or the headlines related to them) are impacting consumer confidence at almost every level.
With a 10% baseline tariff across all countries and a staggering 145% tariff on China, it’s no surprise the stock market has taken a hit. And among those impacted by drops in stock values, it’s certainly conceivable they might think twice about a major purchase they were planning for this year, especially anyone planning to sell stocks to cover a down payment.
The question is how much of this hesitation has to do with the tariffs specifically, and how much is just the pervasive economic uncertainty (which the tariffs could certainly factor into)?
Here’s the breakdown from Redfin’s report:
- 24% of respondents are canceling plans for a major purchase like a home or car.
- 32% are delaying their purchase plans.
- Just 9% plan to make a purchase sooner than expected, and 8% already have.
Redfin Economics Lead Chen Zhao put it bluntly:
“Betting markets have the odds of a recession at higher than 50%, which is understandably making people wary of putting a big chunk of their money toward a house or a car. Consumers are tightening their belts because they are rightly nervous about their job security and the prospect of paying more for everyday expenses.
“There are some potential silver linings for homebuyers: the drop in demand could cause home prices to stay flat, or even fall, and there’s some chance mortgage rates could drop in the next few months.”
Real Estate-Specific Impacts: A Triple Threat
Tariffs and the narrative around them aren’t just shaking up consumer confidence, as Redfin puts it. In some cases, they’re creating tangible roadblocks in the housing market:
- Mortgage Rate Volatility
Tariff-related market uncertainty has already triggered fluctuations in mortgage rates. Buyers watching rates closely may hold off in hopes of better timing. - Rising Construction Costs
With tariffs on imports, building materials are getting more expensive, putting new builds and renovations further out of reach for many buyers, homeowners, and developers. - Falling Stock Values
“One in five prospective homebuyers expect to sell stocks to help fund their down payment,” Redfin reports. But with recent market drops, that strategy may now be off the table for some.
And if buyers are already nervous? Expect them to tighten budgets, reassess timelines, and hit pause until the dust settles.
Some, especially those worried about recession and rising unemployment, may be thinking more about building up their emergency fund first.
Emergency Funds (Or Lack Thereof)
Amid recession fears, the report also highlighted a sobering reality: many Americans aren’t financially prepared for a crisis. Just over one-third of Redfin’s survey respondents (34%) don’t have an emergency fund to cover their housing payment for even one month.
That number climbs to 53% among renters, compared to just 23% of homeowners.
Even among those with savings:
- 56% have 0–6 months of housing payments saved.
- Just 23% have more than 12 months.
- And only 5% of 18–34-year-olds fall into that group.
If a financial shock hits, younger buyers and renters are most at risk, meaning agents may need to offer more education and flexibility when working with first-time buyers or those on the fence.
Key Takeaways for Agents
Here’s what this all means on the ground: many buyers are pulling back not because they don’t want to move, but because they’re unsure if now is the right time.
As an agent, your role as a guide and educator is more important than ever, especially when clients are feeling uncertain about their finances and the broader economy.
With that in mind…
- Set expectations early. If buyers are feeling skittish, help them understand what today’s market means for their purchasing power and how to pivot if needed.
- Stay informed—and be the calm in the storm. Whether it’s explaining mortgage rate swings or guiding clients through uncertainty, your market knowledge is your superpower.
- Offer creative solutions. Help buyers explore down payment options beyond stocks, and be ready to connect them with lenders who understand the moment.
- Lead with understanding. If your clients seem hesitant or overwhelmed, it’s because they probably are. Listen first, then advise.
Tariffs and mortgage rates may be outside your control, but how you show up for your clients during uncertain times? That’s all you.
