How US-China Trade War Tariffs Affect Middlesex County Real Estate in 2025

How US-China Trade War Tariffs Affect Middlesex County Real Estate in 2025

Rising Construction and Renovation Costs

Tariffs on Chinese imports have pushed up the price of building materials like lumber, steel, and fixtures. Local builders and homeowners are paying more for everything from flooring to appliances. This means:

• New construction is more expensive, slowing the pace of new home builds.

• Sellers face higher costs when renovating before listing, which can lead to higher asking prices.

Impact on Home Prices and Inventory

Middlesex County’s median home price continues to climb. In February 2025, the median listing price hit $469,900, up 4.4% year-over-year14. The median sale price reached $399,977 in January 2025, up 12.3% from last year2. Average home values now stand at $416,945, a 5.7% increase from 202436. These price jumps are partly due to the higher costs of materials and labor, which limit new builds and reduce inventory.

• Fewer new homes mean buyers compete for existing listings.

• Inventory remains tight, with only 156 homes for sale in March 20255.

• Homes are selling quickly, often going pending in under two weeks3.

Affordability Challenges for Buyers

With higher prices and limited inventory, affordability is a growing concern for buyers in Middlesex County. Mortgage rates have fluctuated, but the real squeeze comes from the cost of homes and the competition for move-in-ready properties.

• Buyers need to act fast and may face bidding wars.

• First-time buyers and those with limited budgets are especially impacted.

Local Market Remains Strong for Sellers

Despite the headwinds from tariffs, Middlesex County is still a seller’s market. Homes are selling faster and for more money than last year24. Sellers can often pass some of their increased costs onto buyers, especially in desirable towns like Essex, Old Saybrook, and Middletown.

Infographic: Middlesex County, CT Real Estate Market Snapshot (2025)