24% of Americans are Scrapping Plans to Make a Major Purchase Like a Home or Car Due to Tariffs: Redfin Survey

55% of respondents are less likely to make a major purchase this year, including 39% who are “much less likely”

(NASDAQ: RDFN) — Nearly one in four (24%) U.S. residents are canceling plans to make a major purchase, such as a home or a car, because of President Trump’s new tariff policies, according to a new report from Redfin (www.redfin.com), the technology-powered real estate brokerage. An additional one in three (32%) are delaying plans to make a major purchase.

That’s according to a Redfin-commissioned survey conducted by Ipsos between April 10-14, 2025. The nationally representative survey was fielded to 1,004 U.S. adults.

President Trump announced a series of tariff policies in April, including 10% baseline tariffs on all countries and 145% tariffs on China. While even higher tariffs have been paused, the policies have caused volatility in the stock market, and economists are voicing fears they could lead to a significant economic downturn by driving up prices, pushing down consumer confidence and upping the odds of a recession.

Nearly one in 10 (9%) survey respondents said they’re planning to make a major purchase sooner than expected, while 8% said they already made a major purchase sooner than expected.

More than one in three (36%) Democrats said they are canceling plans to make a major purchase, while 43% are delaying a purchase. In comparison, 15% of Republicans are canceling plans for a major purchase, while 21% are delaying a purchase.

The new tariffs are likely to impact the housing market in a number of ways. They have already sent mortgage rates on up-and-down swings, and they’re likely to significantly increase construction costs.

Tariffs and broader economic uncertainty are also pushing down homebuying demand and cutting into buyers’ budgets. A Redfin survey found that one in five prospective homebuyers expect to sell stocks to help fund their down payment; recent tariff-driven drops in the stock market could derail those plans for some buyers.

“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,” said Redfin Economics Lead Chen Zhao. “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.”

55% of Americans are less likely to make a major purchase this year

The prior section discusses a question that asked respondents whether they’re canceling, delaying or speeding up major purchases. Redfin also asked whether tariff policies are making people less likely or more likely to make a major purchase this year.

More than half (55%) of respondents said the new tariff policies made them less likely to make a major purchase this year. In comparison, only 13% said they are more likely to make a major purchase because of the tariffs.

Three in five (60%) of people aged 55+ said the tariffs make them less likely to make a major purchase this year, compared to 54% of people aged 18-34 and 50% of people aged 35-54.

On the flipside, nearly one in four (23%) people aged 18-34 said the tariff policies make them more likely to make a major purchase, compared to 15% of people aged 35-54 and 4% of people aged 55+.

There were also differences across political lines. Nearly four out of five (79%) Democrats said they were less likely to make a major purchase this year, compared to 32% of Republicans.

34% of Americans do not have an emergency fund to cover housing payments

Just over one in three (34%) of survey respondents do not have an emergency fund to cover their monthly mortgage or rent payments in the event they face a financial crisis, like losing a job. Half of the respondents do have an emergency fund.

Financial experts typically recommend Americans have an emergency savings account that covers roughly three months of expenses in case they unexpectedly lose their job. Now, amid increasing recession jitters, experts recommend closer to six months in emergency savings.

Showing how they may be disproportionately impacted by a financial crisis, more than half of renters (53%) said they don’t have an emergency fund, compared to 23% of homeowners.

Of those who do have an emergency fund, 56% have 0-6 months of housing payments covered, 14% have 7-12 months covered and 23% have more than 12 months covered.

Of the households with children that have an emergency fund, only 12% have more than 12 months of housing payments covered, compared to 29% of households without children.

Younger people are also less likely to have a large emergency fund, with only 5% of those aged 18-34 having more than 12 months of payments saved up, compared to 27% of those aged 35-54 and 32% of those aged 55+.

To view the full report, including tables with additional survey response data, please visit: https://www.redfin.com/news/survey-tariffs-major-purchase

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.

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