The housing market is facing uncertainty due to increased and changing tariffs implemented by the Trump administration.
Dee Kemp, a vice president with Milwaukee nonprofit Acts Housing, told WPR’s “Wisconsin Today” that low- and moderate-income families will be hit first and hardest by changes to the housing market.
“As they see their day-to-day costs go up, that is really cutting into the budget for them to have the ability to save for that first house,” Kemp said. “We’re seeing families whose [homebuying] process is just going to take longer because their other expenses are rising.”
Stay informed on the latest news
Sign up for WPR’s email newsletter.
Acts Housing is a Milwaukee- and Beloit-based organization that works to help families of color build wealth through home purchase and rehab services. Kemp said now is not the time to give up on dreams of owning a home.
“We pride ourselves on being a one-stop shop for home ownership,” Kemp said. “No matter what the environment, we can figure out a way to get this done.”
Kemp also discussed changes and challenges she’s seeing in the industry, and she offered advice to potential homebuyers.
The following interview has been edited for clarity and brevity.
Kate Archer Kent: Buying a home is already stressful. On top of this, the current times with worries about tariffs and a tight housing supply can be very nerve-wracking. Do you think your clients will feel like they can leave renting behind at this moment?
Dee Kemp: That’s a decision that every family really has to make for themselves.
What I found is that there is no expiration date on the American dream, and no challenge that’s going to stop families from dreaming of making their own lives better. Despite any of the challenges that are in the environment, that desire is still there. We just have to work harder to make sure those opportunities are still accessible for folks that are low and moderate income.
KAK: You help your clients with home renovations, too. Are you seeing changes there?
DK: Tariffs definitely are going to have an impact on the price of doing renovations. You’re already coming into an environment where we have housing shortages. We need more buildings of all types of housing, including affordable housing. There’s stress on all of the home builders who have higher expenses, and those folks who are trying to do an affordable rehab have all these additional expenses, as well.
What I think we’re not considering is that when people move into a new house, they have to get a refrigerator, or a stove, and those things are going to cost more because of tariffs. So when you talk about monthly home expenses for a family, it’s not just that principal, interest, taxes and insurance; it’s also all of the things inside your house that actually make it a home, where we’re seeing the cost go up for our families.
KAK: What advice do you have for potential home buyers right now?
DK: The great thing is that the principles of good budgeting habits have not changed, so we can really fall back on our bread and butter, which is to teach people how to effectively budget. Right now you do have to be a little bit more creative. Even me, personally, the last time I was at the grocery store, I was like, “OK, I need to start couponing or something because I’m spending way more than what I did a year ago.”
We’re working with families to understand the environment that they’re in so that they’re not afraid to move forward in this environment, and really drilling down on the habits and behaviors that are going to lead them to successful home ownership. And those are the same habits and behaviors that allow you to adapt when the environment is very volatile, like we see it is right now.
KAK: Redfin says Midwestern cities like Milwaukee and Detroit are seeing some of the most price growth due to affordable real estate and increased demand. Are you seeing some of that in Milwaukee?
DK: Oh, absolutely. When I’m out in the community, I am reminding people who live in Milwaukee and who live in Beloit how attractive our communities are to other people. We are still affordable, which means that our citizens need to take advantage of this point in time to make sure that we’re the ones who own our properties. I believe strongly that Milwaukee should be owned by Milwaukeeans.
Never give up on dreams of home ownership. It is absolutely attainable. I think we all do a great job of talking ourselves out of our blessings. But I like to always think positively, and I believe that when there’s a will, there’s a way. Acts Housing is here and views it as a privilege to support families in their journey to home ownership. So don’t be scared. Come and see us.
