Trump’s Third Term? What It Could Mean for Amarillo’s Housing Market
Key Takeaways
Mortgage rates could climb by 10-20%, making home loans more expensive for Amarillo buyers.
Custom-built homes may cost $25,000 to $50,000 more if tariffs on materials like steel and lumber return.
Energy-saving home upgrades could see a 12-18% price increase as demand for solar panels and smart insulation rises.
The rental market in Amarillo may grow by 8-12% as more people hold off on buying.
New home construction in Amarillo could slow by 5-10%, but builders are adapting with cost-saving solutions.
If Trump were to serve a third term, what would it mean for homebuyers, builders, and real estate investors in Amarillo? Housing prices are already a concern, and national policies have a direct impact on mortgage rates, construction costs, and rental demand. Whether you’re looking to buy, build, or rent, understanding these trends can help you make the right decisions.
Will Mortgage Rates Go Up?
One of the biggest questions homebuyers ask is, “How will interest rates change?” If a third Trump term follows past economic policies, the Federal Reserve may take a more aggressive stance on inflation, which could lead to higher interest rates.
Mortgage rates have already risen significantly, jumping from 2.75% in 2021 to over 7% in 2024. If rates increase another 10-20%, a 30-year mortgage on a $350,000 home could cost $200 to $400 more per month. This would push many first-time buyers toward renting instead of purchasing.
Will Custom-Built Homes Get More Expensive?
For those considering custom-built homes in Amarillo, construction costs could go up if new tariffs are imposed. The last time steel and lumber tariffs were introduced, home prices increased by 8-15% nationwide.
Builders in Amarillo rely on 30-40% imported materials, including steel, lumber, and electrical components. If tariffs return at 10-25%, construction costs for a standard 2,500 sq. ft. home could increase by $25,000 to $50,000.
Homebuyers might start asking, “Should I wait to build a home?” The reality is, costs are unlikely to go down anytime soon. However, some builders are switching to domestic suppliers and alternative materials to help keep pricing stable.
If you're looking for homes for sale in Amarillo, TX, now might be the right time to act before prices climb further.
Are Energy-Saving Homes Still Worth It?
The demand for energy-saving custom-built homes is higher than ever. With rising energy costs, many homeowners want solar panels, smart thermostats, and high-efficiency insulation to cut down on utility bills.
However, if tariffs increase on imported solar panels and insulation materials, prices for these upgrades could jump by 12-18%. A full solar system installation that costs $20,000 today could rise to $23,600 or more.
Still, these homes are a long-term investment. Even with higher upfront costs, homeowners can save $1,500 to $2,500 per year on electricity bills, making these upgrades worth it over time.
What About the Rental Market in Amarillo?
Higher home prices and mortgage rates mean more people will rent instead of buy. Companies like B&M Equities, which offer rental homes in Amarillo, may see rental demand increase by 8-12% over the next few years.
With more families and young professionals waiting to buy, monthly rent prices could rise $100 to $250 per unit in certain areas. This shift could make investing in rental properties more attractive for those looking for long-term returns.
What’s Next for Amarillo’s Housing Market?
Housing construction in Amarillo has been booming, with 18% more homes built in 2024 compared to the previous year. However, if costs continue rising, developers may slow new home projects by 5-10% in 2025.
Builders are already taking steps to adjust:
✅ Using cost-effective construction materials to limit price hikes.
✅ Streamlining home designs to reduce overall expenses.
✅ Partnering with local suppliers to avoid import tariffs.
Conclusion: What Should Buyers, Builders, and Renters Do?
A possible third Trump term could bring major shifts in Amarillo’s housing market. Custom-built homes may cost more, mortgage rates could climb, and rental demand may surge.
For homebuyers, locking in a mortgage rate now could save thousands over time. For those considering building, working with local builders who offer flexible pricing may be the best option. Renters should also stay aware of price trends, as demand is expected to rise.
Meanwhile, B&M Equities remains a reliable option for rental homes in Amarillo, providing quality housing as the market evolves. If you're searching for homes for sale in Amarillo, TX, staying informed and working with trusted builders can help you make the best decision.
