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Supply costs, shifting consumer behavior, falling tourism are terrifying many small business owners

By James R. Hood of ConsumerAffairs
April 15, 2025

Key takeaways:

  • Entrepreneurs nationwide prepare for cost increases tied to new import tariffs

  • Supply chain adjustments, price hikes, and sourcing shifts underway

  • Many owners fear long-term strain on operations, hiring, and consumer demand


As new rounds of President Trump's tariffs loom, small businesses across the United States are scrambling to assess and mitigate the potential economic fallout. The measures include broad import taxes on a wide range of goods, with higher rates for nations running trade surpluses with the U.S.

Business owners say the move has injected uncertainty into already fragile post-pandemic operations.

From retail to manufacturing, owners are reviewing supply chains, forecasting pricing adjustments, and, in some cases, exploring domestic sourcing options to shield operations from what could become a long-term economic shift.

Im terrified for my business, and Im terrified for all the other small businesses in the United States right now, because we dont know what to do, and were invested in our businesses. I could lose my home, and I dont understand it, and I dont know what to do," said Beth Benike, the ownerofBusy Baby, Zumbrota, Minnesota.

"I am abandoning my products in China. I am leaving them there because I simply cannot afford to ship them here," Benike told The Guardian.

Weve already seen material costs jump 8% in the last quarter, said Carmen Liu, owner of a home goods company in Illinois. If tariffs hit as planned, Ill either have to raise prices or cut back on hiring neither is ideal.

Navigating rising costs

Many small businesses rely on international suppliers for raw materials, parts, or finished goods. The proposed tariffs, particularly on electronics, textiles, and auto components, are expected to raise wholesale costs by 1025%, depending on the country of origin.

Were building contingency plans, said Tim Harper, who runs a bike shop in Oregon. If tariffs go into effect, our imported components could cost 20% more were already working with vendors to lock in pre-tariff inventory.

Others, like food and beverage startups, are stockpiling inventory or seeking alternative suppliers in countries unaffected by the new trade rules.

Tourism, travel bookings fall

The ongoing tariffs are having a direct impact on our vacation rental business, with cancellations from Latin American and Canadian guests and a noticeable drop in new bookings from these markets," said Helena Sideris,general manager,Park City Lodging, Park City, Utah. "Combined with rising costs and broader economic volatility, these shifts are creating real pressure on our family business.

In California, the popular winter playground Palm Springs has been feeling a chill. Canadian visitors and winter residents packed up and left early and, while no tumbleweeds have been spotted, the normally bustling downtown area has been eerily quiet lately.

Gov. Gavin Newsom unveiled atourism campaignon Monday urging Canadians to come experience our California Love after seeing a dip in in visits from the United States' northern neighbors who say theyve been alienated by President Trumps policies.

In a videoposted on social media, Newsom focuses on the allure of the Golden State while distancing it from Trumps administration.

Sure, you-know-who is trying to stir things up back in D.C., but dont let that ruin your beach plans, Newsom says, as images of the Golden Gate Bridge and a woman flying a kite on a beach appeared on the video.

Shifting consumer behavior

The concern isnt just about input costs its also about whether customers will absorb higher prices. A recent Numerator survey found that 83% of U.S. consumers plan to alter their spending habits in response to rising costs. For small businesses, this could mean reduced sales or a longer road to profitability.

Consumer spending has remained robust but there are early indicators that consumers may be cutting back.Kikoff, acredit-building platform,surveyed over 1,700 users to understand how inflation, and now tariffs, are reshaping spending behavior.

Key findings include:

  • A majority (85.7%) said inflation has impacted their ability to afford everyday items like gas and groceries

    • Nearly half have used Buy Now, Pay Later (BNPL) options to manage unexpected expenses

    • More than a quarter turned to payday loans

  • Low confidence in the economy

    • About two-thirds of those surveyed rate the current U.S. economy as "poor" or "very poor and believe a recession is likely or very likely in 2025

  • 73% have scaled back summer plans to reduce spending

That's not good news for businesses counting on consumers to continue their habitual spending.

We run a tight margin. A price hike of even 5% can mean the difference between staying afloat or going under, said Marisol Rivera, who owns a boutique skincare brand sourcing packaging from Asia.

Policy and Preparedness

Industry groups like the National Federation of Independent Business (NFIB) and U.S. Chamber of Commerce are calling for clarity and support, urging policymakers to consider how tariffs could compound inflation pressures and slow recovery for small businesses.

"More than 95% of consumers live outside the United States. Selling more U.S.-made goods and services around the world is crucial to American jobs and will help businesses small and large grow. Expanding trade also enhances the competitiveness of U.S. manufacturers while boosting the buying power of American families," the Chamber said on its website.

Meanwhile, some small business owners are hopeful that policy details or legal challenges may delay or soften the impact but many arent waiting to find out.

Weve learned that agility is key, said Harper. Whether its tariffs, supply chain snags, or labor shortages, we have to be ready to pivot fast.


As the business community awaits formal implementation of the tariff plan, small business owners are balancing caution with creativity, determined to protect their livelihoods and adapt to an increasingly volatile economic environment.





Posted: 2025-04-15 23:42:20

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More News From This Category
Consumer News: Stop overpaying at Kroger: Insider tips that lower your grocery bill
Fri, 06 Feb 2026 02:07:05 +0000

If youre paying shelf price at Kroger, youre doing it the hard way

By Kyle James of ConsumerAffairs
February 5, 2026
  • The free Kroger loyalty account unlocks weekly sale pricing, personalized digital coupons, and fuel points all of which stack together automatically when you shop smart.

  • Combine weekly ad sales, app-based digital coupons, Catalina register coupons, and cash-back rebates from apps like Ibotta and Fetch to max your savings.

  • Watch for Krogers bulk promos, yellow clearance tags, and seasonal markdowns, then build your weekly meals around those deals to cut your bill without cutting quality.


Grocery bills keep climbing, but that doesnt mean you have to throw your budget out the window. If you shop regularly at Kroger, there are smart ways to cut costs without sacrificing quality or nutrition.

Think beyond coupons and find strategies that save money weekly, including trip hacks that stack, and ways to put extra cash back in your pocket. Heres how to shop at Kroger like a pro.

1. Start with the Kroger Loyalty program

Before you do anything else, get a Kroger loyalty card and digital account via the Kroger app.

Its free, easy to set up in the app or in-store, and automatically unlocks the core savings tools Kroger offers:

  • Weekly sale prices and digital deals tailored to your shopping habits.
  • Digital coupons that you clip right in the app.
  • Fuel points that turn grocery purchases into gas discounts.
  • Personalized offers that Kroger often doesnt advertise in store.

Pro tip: Link your Kroger Shoppers Card and email address so every digital coupon you clip applies automatically when you swipe at checkout.

2. Stack discounts like a pro

Coupons at Kroger are still a big deal, especially if you use them right.

  • Clip digital coupons in the Kroger app before you shop. These are great because they stack with weekly sales and automatically apply at checkout.
  • Look for Catalina coupons at the register.These come attached to your Kroger receipt and the coupons are typically for stuff you regularly buy. Dont ignore them, instead use them for easy savings on your next purchase.
  • Some Kroger locations now even have paper coupons alongside their digital ones. These are especially popular with shoppers who prefer physical savings.

Dont underestimate the power of using digital coupons, plus their weekly ads, along with Catalina coupons. By stacking all three, you can create deep discounts on your everyday staples.

Pro tip: Use a free rebate app like Ibotta, Fetch, and Checkout 51 and stack a rebate on top of the above coupons. The rebates are in the form of cashback on name brands along with generic items like bananas, milk, and eggs.

You simply snap a picture of your receipt via the app, and they automatically look for products that have rebates attached to them.

3. Watch for big sale events & special tags

Kroger uses several price tag systems that signal deals for in-the-know shoppers:

  • 10 for $10 and similar bulk discounts: You dont actually have to buy 10 items to get the sale price. Each item actually rings up at the discounted unit price. So if you only need five, it will only cost you $5.
  • Yellow and WooHoo sale tags: These special tags are either managers specials or clearance deals on meat, produce, and dairy. Look for them and save.
  • Seasonal and holiday markdowns: Youll see these markdowns most often on bakery, produce, and meats. They can save you big when you stock-up right after a major holiday.
  • Scan the weekly ad before you shop: Then build your weekly meal plan around the sales. Finding the deals first, then figuring out what to cook, is one of the most effective ways to cut your Kroger bill.

Pro tip: Ask about senior discount days. Occasionally, on specific days, Kroger offers a 5% or 10% discount for those aged 55 or older. Ask an employee at your location if they have any senior days coming up in early 2026.

4. Turn your grocery trips into gas savings

Krogers Fuel Points Program is a clever way to turn groceries into discounts at the pump. It works like this:

  • Earn 1 Fuel Point for every $1 you spend on qualifying groceries.
  • 100 points = $0.10 off per gallon at Kroger gas stations (up to 35 gallons per fill-up), 200 points = $0.20 off, and so on.
  • Bonus points often come from promotions (like buying gift cards) where you can earn 2 or even 4 fuel points.

Pro tip:Buying gift cards at Kroger is a no-brainer way to save when buying gas and is worth mentioning again. They often run 4x fuel points promoswhen buyinggift cards.

So, ifyou get into the habit of buying gift cards from Kroger for the stores and restaurants you know you'll be visiting,you can scoresomecheap gas. Many Kroger shoppers have reported regularly saving $1 or more per gallon on their fill-ups.

5. Take advantage of pickup & delivery deals

Online ordering isnt just convenient, but when done right, its also a great money-saving tool:

  • Kroger often offers exclusive digital coupons for Pickup/Delivery orders.
  • Scheduling ahead can avoid high Instacart fees while still capturing digital savings.
  • Krogers Boost membership gives free delivery on $35+ orders and extra perks like double fuel points.

Get into the habit of shopping the Kroger app first. That way, youll see all the digital deals first as they're easy to misswhen you'rein the store. Especially things like the cashback offers and limited-time sales.

Pro tip: Ask the meat department for Family Packs that arent on the sales floor yet. Early in the day, stores usually have freshly prepped packs of chicken, pork, or beef that havent made it to the display case yet.

Its been my experience that employees are happy to hook you up when you politely ask. Youll get a much lower per-pound price than the smaller trays on display, and sometimes even fresher cuts. Then you can freeze what you wont eat in the next couple of days.

6. Buy Kroger brands (and dont be afraid to try them)

Kroger store brands like Simple Truth and Private Selection are almost always cheaper than the popular national brands and often just as good.

Even better: Via their Freshness Guarantee, if youre not happy with a Kroger brand product for any reason, theyll refund or exchange it. So, theres very little risk in trying cheaper options to see if your family likes them.

Pro tip: When looking for Kroger-branded items to try, start with what I call the swap items ratherthanthe sacred items.

The "swap items" are the things your family will never notice. Stuff like flour, sugar, canned veggies, shredded cheese, frozen fruit, and pasta. These are often made by the national brand, but cost significantly less.

Stay away from the sacred items at first, also known as the products that your family has a very strong opinion about and would notice in a heartbeat if you tried swapping them for the store brand. These arethings like ketchup, peanut butter, mac & cheese, soda, and popular cereals.


Read More ...


Consumer News: The price of eating well: How your state shapes your grocery bill
Thu, 05 Feb 2026 20:07:06 +0000

How food prices, restaurant access, and location are changing what Americans put on their plates

By Kristen Dalli of ConsumerAffairs
February 5, 2026

  • Where you live plays a major role in how much it costs to eat healthy, with annual costs ranging from just over $13,000 to nearly $19,000 per person in the most expensive states.

  • High prices arent the only barrier to healthy eating limited access to restaurants and fresh food options can make it harder to maintain a balanced diet, even if youre willing to spend more.

  • Rising supply-chain and transportation costs are pushing fresh food prices higher, but smart swaps like frozen vegetables, legumes, and store brands can help stretch your grocery budget.


Eating healthy sounds simple enough: more fruits and vegetables, fewer processed foods, balanced meals at home, and the occasional nutritious night out. But in reality, where you live can make that goal far more expensive and in some states, it can feel almost out of reach.

A new January 2026 report from BLogic Systems takes a closer look at what it actually costs to maintain a healthy diet across the U.S., factoring in both grocery shopping and dining out.

And its not just about price tags. In places like Alaska, a lack of restaurants that meet basic healthy nutrition standards limits choices just as much as high food costs.

Ultimately, these factors influence where people shop, how often they cook at home, and how frequently they eat out.

ConsumerAffairs spoke with a BLogic Systems expert, who broke down how economic pressure is changing what healthy eating looks like in America today.

Where is healthy eating the most expensive?

To calculate which states are the most expensive for following a healthy diet, experts explored the economic impact of eating out at restaurants and eating at home.

In terms of eating out, the research focused on the price range of restaurants that offer meals meeting predefined nutritional criteria for balanced, minimally processed, and low-added-sugar profiles. Eating at home was calculated by using state-level grocery price data from the USDA and national food expenditure surveys.

Based on that, heres a look at the top 10 states where its most expensive to eat healthy:

  • Hawaii

    • Annual healthy eating costs per individual: $14.5K

    • Estimated annual healthy eating out costs per person: $4.0K

    • Total cost to eat healthy: $18.5K

  • New York

    • Annual healthy eating costs per individual: $12.2K

    • Estimated annual healthy eating out costs per person: $2.9K

    • Total cost to eat healthy: $15.1K

  • Massachusetts

    • Annual healthy eating costs per individual: $11.6K

    • Estimated annual healthy eating out costs per person: $3.4K

    • Total cost to eat healthy: $15.0K

  • Alaska

    • Annual healthy eating costs per individual: $12.0K

    • Estimated annual healthy eating out costs per person: $2.8K

    • Total cost to eat healthy: $14.8K

  • California

    • Annual healthy eating costs per individual: $10.7K

    • Estimated annual healthy eating out costs per person: $3.1K

    • Total cost to eat healthy: $13.8K

  • Connecticut

    • Annual healthy eating costs per individual: $11.0K

    • Estimated annual healthy eating out costs per person: $2.6K

    • Total cost to eat healthy: $13.6K

  • Wyoming

    • Annual healthy eating costs per individual: $11.2K

    • Estimated annual healthy eating out costs per person: $2.1K

    • Total cost to eat healthy: $13.3K

  • Vermont

    • Annual healthy eating costs per individual: $10.7K

    • Estimated annual healthy eating out costs per person: $2.6K

    • Total cost to eat healthy: $13.2K

  • New Jersey

    • Annual healthy eating costs per individual: $10.6K

    • Estimated annual healthy eating out costs per person: $2.6K

    • Total cost to eat healthy: $13.2K

What drives up the cost of healthy food?

According to BLogic Systems, there are a few factors that come into play:

  • "Freshness Tax": Unlike shelf-stable ultra-processed foods, fresh produce, lean meats, and dairy require cold-chain logistics (refrigeration) and frequent restocking. This adds a massive overhead that processed foods simply don't have.

  • Supply Chain Volatility: In 2026, were seeing specific spikes in categories like beef and veal (up over 9%) and fresh vegetables.

    • The Global Cold Chain Market is growing at a 13.6% CAGR through 2026. These energy-intensive transport costs are passed directly to the consumer. For Hawaii, where 90% of food is imported, this creates the $14.5K "at-home" cost we see in our data.

  • The Production Gap: Fixed costs for supplying fresh fruits and vegetables remain about 40% higher than for grains or sugars used in processed snacks. Essentially, it's cheaper to make a calorie-dense cracker than it is to get a fresh bell pepper to a shelf in a high-cost area.

Making the most of your money

If you find yourself in one of the most expensive states to eat healthy, there are some ways to stretch your budget. BLogic Systems offered some advice for consumers:

  • Frozen vegetables are nutritionally equivalent to fresh, but significantly cheaper and won't rot in your crisper drawer.

  • Legumes, brown rice, and oats are the "inflation-proof" options.

    • For example, dried lentils provide roughly 20g of protein per $0.25 serving, meanwhile lean beef in New York currently averages $1.15 for the same protein content.

  • The 50% Rule: Aim for half the plate to be vegetables (even canned ones with no added salt) and 25% to be an affordable protein like eggs or beans.

  • In 2026, the quality gap between name-brand "health" foods and generic store brands is virtually nonexistent. Whenever you can, choose the store-brand.


Read More ...


Consumer News: Target’s new CEO says it’s time to win shoppers back
Thu, 05 Feb 2026 20:07:05 +0000

His four-part plan should have loyal (and disgruntled) shoppers optimistic

By Kyle James of ConsumerAffairs
February 5, 2026
  • New Target CEO Michael Fiddelke is doubling down on trendy, affordable products and stronger private labels to compete on value without losing Targets signature look.

  • Expect cleaner aisles, fewer out-of-stocks, faster Drive Up, and more open checkout lanes at busy times.

  • Smarter inventory systems and more investment in workers aim to reduce order issues and make in-store help easier to find.


Target just handed the top job to longtime exec Michael Fiddelke, and his first message was clear. The retailer has real work to do to rebuild trust after a rocky year of boycotts, policy backlash, and sluggish sales.

Fiddelke officially took over Feb. 1 from Brian Cornell, who moves into an executive chair role. Now the focus is a four-part turnaround plan aimed at getting shoppers excited about Target again.

1. Expect better deals + stylishdesign

Fiddelke says Target will double down on what originally made it stand out, which is stylish products at affordable prices.

What that means for you:

  • More emphasis on trendy but budget-friendly home, apparel, and seasonal lines.
  • Possible refresh of private-label brands (where Target makes higher profit margins).
  • Look for a push to compete with Walmart on value without looking cheap.

If Target can do this right, expect to see more Pinterest board-ready displays that made Tar-zhay famous in the first place.

Couple this with more competitive prices, especially in home dcor and clothing, and Target will be definitely be heading in the right direction.

2. Stores are about to get more attention

Target admits that their in-store experience hasnt felt as good or inspiring as it used to. Thats now become a priority of the new CEO.

The changes we should see:

  • Cleaner, less cluttered aisles
  • Better in-stock rates (fewer empty shelves)
  • Faster Drive Up and order pickup
  • More staffed checkout lanes at peak times

Translation: Expect less friction and fewer in-store annoyances like out-of-stocks and messy shelves. This could be a nice change if youve felt like Target runs have gotten more stressful lately.

3. More tech is coming (for better or worse)

This doesnt mean theyll be selling more TVs and laptops, but rather introducing more technologybehind the scenesto make shopping frictionless.

What that could mean:

  • Smarter inventory systems, so items actually show as available when they are (and vice versa).
  • Faster fulfillment for in-store and curbside pickup, along with quicker online delivery.
  • More app-based personalization and offers.

The biggest upside for shoppers would be fewer canceled orders and a faster customer service response.

The downside is potentially more data tracking tied to your shopping behavior via the Target app.

4. Investment in workers and communities

Fiddelke has a long history in operations and human resources at Target and has supported higher pay and benefits in the past.

This part of the plan could include:

  • Continued wage and training investments
  • More focus on local community engagement
  • Efforts to stabilize staffing issues in stores

For shoppers, that should translate to friendlier employees who are less overwhelmed.

It will be interesting to see if the new CEO keeps their unofficial 10-4 policy, which trained employees to smile or wave within 10 feet of a customer, and ask if they need help within fourfeet.

Why this reset is happening now

Target has been dealing with falling sales and brand backlash since early 2025, including controversy over social policies and store-level incidents involving U.S. Immigration and Customs Enforcement.

On top of that, shoppers have complained about high prices, lack of inventory, and overall store conditions.

Retail analysts say Targets brand is still strong, especially if the company fixes the basics like value, reliability, and a welcoming in-store feel.

In many ways, 2026 is shaping up to be a make-or-break year for Targets reputation, and your shopping experience will be the real test.


Read More ...


Consumer News: Staying up late could be hard on your heart, researchers find
Thu, 05 Feb 2026 20:07:05 +0000

Being a night owl could come with cardiovascular health risks

By Kristen Dalli of ConsumerAffairs
February 5, 2026
  • Adults who naturally stay up late tend to have poorer heart health profiles than people with typical or early sleep-wake patterns.

  • Much of this difference is linked to lifestyle factors like diet quality, sleep habits, smoking and activity levels.

  • Over nearly 14 years of follow-up, night owls had an approximately 16% higher risk of heart attack or stroke compared with those in the middle chronotype group.


Have you ever wondered whether being a night owl or a morning person could affect your health?

Researchers are increasingly aware that when we sleep and are active our chronotype may play a role in long-term well-being, especially when it comes to the heart.

A recent study published in the Journal of the American Heart Association looked at nearly 323,000 adults from the U.K. to explore how peoples natural sleep-wake preferences relate to cardiovascular health and disease risk.

The study

Rather than just recording bedtimes, researchers asked participants to self-identify their natural preference morning, evening, or intermediate and then linked that information with detailed health data.

Cardiovascular health was measured using the American Heart Associations Lifes Essential 8 score, a composite of eight factors known to influence heart disease risk: diet quality, physical activity, sleep health, smoking exposure, blood pressure, cholesterol, blood sugar and body weight.

By combining these self-reports with medical records and health measurements over about 14 years, the team could track how different chronotypes fared in terms of heart disease outcomes specifically, first heart attack, or stroke.

The results

Compared with people who fell in the middle of the chronotype spectrum, those who identified as definite evening types were much more likely to have lower overall heart health scores based on Lifes Essential 8. In fact, they were about 79% more likely to have a score that signals poorer cardiovascular health.

Over the follow-up period, evening types also had a 16% higher risk of a heart attack or stroke than intermediate chronotypes, even after adjusting for other factors.

Evening people often experience circadian misalignment, meaning their internal body clock may not match the natural day-to-night light cycle or their typical daily schedules, lead study author Sina Kianersi, Ph.D., D.V.M.; said in a news release.

Importantly, the analysis suggested that most of this increased risk is tied to modifiable lifestyle factors. Night owls in the study tended to have habits linked with poorer heart health like less sleep, lower diet quality, or higher nicotine exposure which help explain their lower heart health scores and increased risk.

In contrast, those who identified as definite morning types had a slightly better cardiovascular profile than people without a strong sleep-wake preference, though the difference was modest.

Evening types arent inherently less healthy, but they face challenges that make it particularly important for them to maintain a healthy lifestyle, researcher Kristen Knutson, Ph.D. said in the news release.

What this means for you

Being a night owl isnt a sentence to heart disease, but this research highlights how sleep timing and daily routines intertwine with heart health. Because many of the habits associated with late-night activity are changeable like smoking, diet and sleep patterns people who stay up late may be able to protect their heart by focusing on those core healthy behaviors.

Some medications or therapies work best when they align with a specific time of relevant circadian rhythms, and this time will vary depending on whether you are a morning, intermediate, or evening chronotype, Dr. Knutson said. Targeted programs for people who naturally stay up late could help them improve their lifestyle behaviors and reduce their risk of cardiovascular disease.


Read More ...


Consumer News: Homebuyers scored the biggest discounts in more than a decade in 2025
Thu, 05 Feb 2026 17:07:05 +0000

As demand cools and listings pile up, buyers are offering well below the list price

By Mark Huffman of ConsumerAffairs
February 5, 2026
  • The typical homebuyer who paid below asking price in 2025 received a 7.9% discountthe largest since 2012.

  • Nearly two-thirds of buyers paid less than list price, the highest share since before the pandemic.

  • Condo buyers and shoppers in Florida metros saw the deepest price cuts.


Increasingly, the price in the home listing is not the price the home-seller expects to get. New data reveal that buyers were able to secure significant discounts in 2025, simply by making a lower offer.

The typical homebuyer who purchased a home for less than the asking price in 2025 received a 7.9% discount, according to a new analysis from real estate broker Redfin. That marks the biggest discount since 2012 and reflects a sharp shift from the pandemic-era frenzy, when bidding wars routinely pushed homes above list price.

In dollar terms, that discount amounts to about $31,592, based on last years median original list price of $399,900. Even when factoring in all buyersnot just those who negotiated lower pricesthe average discount was $15,196, or 3.8%.

A major shift in the housing market

Discounts are becoming the norm rather than the exception, the analysis found. Roughly 62.2% of all homebuyers in 2025 paid less than the original list price, the highest share since 2019. By contrast, just 22.8% paid more than askingthe lowest share since 2019while 15.6% paid exactly the list price, a figure that has remained relatively stable over time.

The growing prevalence of discounts is tied to a historic imbalance in the market. There are now 47% more home sellers than buyers, giving shoppers more options and far more negotiating power than theyve had in recent years.

High mortgage rates and elevated home prices have sidelined many would-be buyers, while some sellers have been slow to adjust to softer demand.

As a result, price cuts are spreading, and some homeowners are choosing to delist altogether, hoping for a more favorable market down the road.

Buyers can afford more than they think

Homebuyers in 2026 shouldnt write off homes that are slightly above their budget because theres a good chance theyll get some sort of concession from the seller, said Redfin Senior Economist Asad Khan. This marks a reversal from the pandemic home-buying frenzy, when house hunters were advised to search below their budget because properties were selling far above asking price.

Khan noted that pricing homes has become increasingly difficult as market conditions shift quickly and vary widely by location. While demand remains resilient in some areas, it has softened rapidly in many others.

The share of buyers landing especially steep discounts has also surged. About 26.1% of buyers who paid below the asking price in 2025 received a discount of 10% or more the highest share since 2012. Another 27.8% secured discounts between 5% and 10%, while fewer than half received smaller reductions of under 5%.

On the ground, agents say sellers expectations are often shaped by when and how they bought their homes. In Dallas, Redfin Premier agent Connie Durnal said some sellers remain anchored to prices that no longer match todays market.

A different pricing landscape

I have one seller who overpaid a few years ago and wants to list at $950,000, but recent comps support closer to $825,000, Durnal said. Another seller priced below what they paid, which generated multiple offers and ultimately sold above asking. Pricing realistically makes all the difference.

Mortgage rates are another factor. In Milwaukee, Redfin Premier agent Ben Ambroch said many homeowners locked in ultra-low rates during the pandemic and are reluctant to sell unless they can afford the higher monthly payments that come with todays financing costs.

Condo buyers, meanwhile, are seeing the biggest bargains. The typical condo buyer who paid below list price received an 8.1% discount in 2025, compared with 7.9% for single-family homes and 6.5% for townhouses. Overall, more than two-thirds of condo buyers paid less than asking, as rising HOA fees, insurance costs, and special assessments weigh on demand.

Geography also plays a major role. West Palm Beach, Florida, led the nation among large metros, with a typical discount of 10.9% for homes sold below list price. Detroit, Fort Lauderdale, Pittsburgh, and Miami followed close behind. Floridas heavy homebuilding activity second only to Texas has given buyers ample choice, while rising insurance costs and climate risks have pushed sellers to offer concessions.

Smallest discounts

At the other end of the spectrum, Seattle posted the smallest typical discount at 5.7%, followed by Washington, D.C., Minneapolis, Las Vegas, and Virginia Beach.

Only four major metros still saw typical homes sell above asking price: San Francisco, Newark, San Jose, and Oakland. In San Francisco, buyers paid a median premium of 3.8%, driven in part by renewed demand tied to the AI boom and return-to-office trends. Even there, however, premiums have narrowed as overall market pressure eases.

Taken together, the data underscore how dramatically the balance of power has shifted giving todays buyers leverage that would have been almost unthinkable just a few years ago.


Read More ...


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