A report from Joint Economic Committee Democrats says tariffs increased construction costs, slowed permitting and added pressure to the state’s housing market.

Organ Mountain News report

WASHINGTON - U.S. Sen. Martin Heinrich said Friday that tariffs imposed by President Donald Trump worsened New Mexico’s housing affordability problems by driving up construction costs and slowing the pace of new homebuilding.

Heinrich, a Democrat and member of the U.S. Joint Economic Committee, pointed to a new report from committee Democrats that examined how tariffs and broader economic uncertainty have affected housing markets in New Mexico and across the country.

According to the report, builders and real estate professionals told committee staff that tariffs increased the cost of materials and home appliances, making it harder to build and sell homes. The report says home builders estimate tariff-related impacts have added at least $10,900 to construction costs.

The report also says Trump’s tariffs on steel and copper pushed prices for those materials sharply higher compared with the previous year, while steel mill products such as bars, wire, pipes and plates increased by 21%. It says prices for popular ovens at major retailers rose by an average of $70, or about 9%.

In New Mexico, the report says the number of private housing units authorized by building permits fell by an average of 70 per month in 2025 compared with 2024, which would amount to 840 fewer homes permitted over the course of a year. It also says there were 60,000 fewer jobs in home construction nationwide in February 2026 than in December 2024.

“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,” Heinrich said in a statement. “This report is clear: Trump’s tariffs are slowing down the construction of new housing and making it more difficult to achieve homeownership.”

Heinrich said he will continue pushing legislation aimed at lowering housing costs, increasing supply and rolling back tariffs on homebuilding materials and consumer goods.

Among the bills he highlighted were the Housing Tariff Exclusion Act, which would exempt homebuilding materials from tariffs, and the Tariff Refunds for Working Families Act, which would create a rebate program for families facing higher prices tied to tariffs. He also pointed to broader housing legislation the Senate passed last month, including provisions intended to expand affordable housing and streamline rural housing programs.

The report adds to a broader political fight over tariffs and housing costs as lawmakers debate how to address affordability in New Mexico and nationwide.

The full JEC report can be read here.