How Tariffs Are Driving Up Housing Costs and Shaping the Real Estate Market
Hey everyone,
I wanted to share some thoughts on a topic that’s been making headlines this year: tariffs on steel, aluminum, and other materials. I know “tariffs” might sound like something that only affects politicians or big corporations, but the truth is, they have a direct impact on the homes we live in, the rent we pay, and the investments we make.
As many of you know, I spend my days building, financing, and investing in real estate. Part of that work is paying close attention to policy changes like this, because they shape the entire market. So, here’s a quick breakdown of what’s happening and why it matters to all of us.
Tariffs Are Rising Fast
This year has been a rollercoaster:
• In February, the administration added a 25% tariff on steel and aluminum imports.
• In June, they raised it to 50%.
• In August, they expanded those tariffs to cover over 400 other imported products.
While tariffs are designed to support U.S. manufacturing, the ripple effects reach every corner of the economy—and real estate is right in the middle of it.
Why It Matters to Housing
Steel and aluminum are the backbone of construction. From the skeleton of new apartment buildings to pipes, wiring, and even appliances, these materials touch everything. About one-quarter of the steel we use in the U.S. is imported, mostly from Canada, Mexico, and Brazil. When tariffs go up, costs climb across the board.
And it’s not just big steel beams. Smaller parts like sheeting, piping, and fixtures all get more expensive too. Even the finishing touches—like refrigerators, ovens, and HVAC systems—are affected.
The Domino Effect You’ll Feel
Here’s what all that means for us:
Higher construction costs → Developers (like me) pay more to build new homes and apartments.
Higher prices and rents → Builders and landlords pass those costs along, meaning homes and rent are more expensive.
Less housing supply → If costs get too high, fewer new buildings go up, which keeps prices elevated.
That’s why tariffs aren’t just a trade issue—they’re a cost-of-living issue.
Why I’m Sharing This
I know most of you don’t spend your days analyzing construction budgets or supply chains, but these policies are already shaping our neighborhoods. If you’re a homeowner, you’ll probably see higher costs for renovations and upgrades. If you rent, expect slower relief on affordability. And if you invest in real estate, tariffs need to be part of your long-term strategy.
These policies may help U.S. steel producers, but for the average family, they’re making housing and construction more expensive and less accessible.
I’m sharing this because understanding these changes is the first step to making smarter decisions—whether that’s buying a home, planning a renovation, or considering an investment. This is the kind of shift that affects all of us, and I think it’s important to keep an eye on it.
If you ever want to chat about what this means for your own plans or investments, I’m happy to share more of what I’m seeing in the market.