Americans Are Pulling Back From Plans To Make Big Purchases, Says Redfin

Tariffs are causing U.S. consumers to rethink big purchases.

More than 30% of Americans are delaying plans to make major purchases, like a home or a car, and about a quarter are cancelling those plans altogether, according to a new report from Redfin.

Consumers are broadly concerned about how tariffs will impact their spending, according to the report, as more than half of respondents said tariff policies will make them less likely to make a major purchase this year. About one in 10 said they are more likely to make a major purchase because of tariffs.

There’s a political aspect to the responses: On average, Democrats are altering their plans at a higher rate than Republicans, as over 40% of Democrats say they are delaying plans to make big purchases and more than one in three are fully cancelling plans. That falls to 20% and 15% of Republicans, respectively.

Mortgage rates have been on a rollercoaster ride, and tariffs would likely raise construction costs. With the economic outlook uncertain, buyers’ budgets are being slashed and homebuying demand is likely to dip, Redfin said in the report. Auto-market experts have said they expect car prices to rise, weighing on demand, though some people may have been snapping up vehicles before that happens.  

“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,” Redfin Economics Lead Chen Zhao said in the report.

While Zhao says consumers are “tightening their belts” due to nerves about job security and higher costs of everyday expenses, she says the drop in demand could cause home prices to stay flat or even fall, and buyers could also see mortgage rates drop soon, bringing a smidge of optimism.

US retail sales rose 1.4% in March, the largest monthly increase since 2023, according to government data.