NEW REPORT: Trump’s Tariffs Exacerbate New Mexico Housing Crisis

WASHINGTON – U.S. Senator Martin Heinrich (D-N.M.), a member of the U.S. Joint Economic Committee (JEC), released the following statement reacting to a report by JEC Democrats that details how the Trump administration’s tariff policy has slowed the construction of housing in New Mexico and nationwide — exacerbating the housing crisis.

“Far too many New Mexicans are struggling to find an affordable place they can call home – all while costs continue to rise due to Trump’s unlawful tariffs,” said Heinrich. “This report is clear: Trump’s tariffs are slowing down the construction of new housing and making it more difficult to achieve homeownership. I will continue working to repeal Trump’s tariffs, expand the supply of housing that New Mexico working families can afford, and get a refund to the folks who have who paid the price for these tariffs.”

For the report, JEC Democrats conducted outreach to home builders, multifamily housing developers, and realtors, who detailed the impact that tariffs and economic uncertainty are having on the housing market, which is making it more difficult to build and sell homes. New calculations in the report show that:

• Materials and other products that are used to build and furnish homes have become more expensive over the past year.
  • Home builders estimate tariff impacts have increased the cost of construction by $10,900 or more.
  • Trump’s tariffs on steel and copper made prices for these building materials skyrocket 25%, compared to the year before, and the price of steel mill products – including steel bars, wire, pipes, and plates – increased by 21%.
  • Essential home appliance prices are also increasing. The most popular ovens at key retailers increased in price by $70 on average, or 9%.

• The rate of new home construction has fallen.
  • By the end of the first year of Trump’s second term, the rate that home builders secured construction permits and started construction sunk below late 2024 levels.
  • In 2025, New Mexico saw 70 fewer private housing units authorized by building permits per month than in 2024. That’s 840 fewer homes permitted in 2025 than in 2024.

• There were 60,000 fewer jobs in home construction in February 2026 compared to December 2024.

You can read the full JEC report here.

Last month, Heinrich announced that the Senate passed legislation he cosponsored to tackle the housing crisis in New Mexico and nationwide by increasing the housing supply and lowering the cost of housing for working families. The 21st Century ROAD to Housing Act includes four bills Heinrich cosponsored, including the: Choice in Affordable Housing Act; HOME Investment Partnerships Reauthorization and Improvement Act; Streamlining Rural Housing Act; and Rural Housing Service Reform Act. For additional background on Heinrich’s actions to lower housing costs, address homelessness, and build more housing for New Mexico working families, click here.

Additionally, Heinrich cosponsored the Housing Tariff Exclusion Act, legislation that will lower the cost of housing for New Mexico families by excluding homebuilding materials from Trump’s tariffs.

Heinrich also led the Tariff Refunds for Working Families Act, his legislation to create a rebate program for individuals and families who have paid increased prices for groceries and everyday essentials due to President Trump’s unlawful foreign tariffs.

Furthermore, Heinrich cosponsored the Working Americans’ Tax Cut Act, legislation to provide much-needed tax relief for New Mexico workers who are facing increased prices for groceries and everyday essentials due to Trump’s unlawful foreign tariffs.

Earlier this year, Heinrich cosponsored the No Tariffs on Groceries Act, legislation to prevent President Trump from enacting tariffs that raise grocery costs for New Mexico families. The No Tariffs on Groceries Act would require congressional approval for any tariff levied on food or agricultural products

For additional background on Heinrich’s actions to lower costs and help New Mexicans put food on the table, click here.

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