The Hidden Impact of Tariffs on Real Estate: What Every Agent and Investor Should Know

By Gordon Watson

After selling over 4,000 homes and coaching countless agents and investors through changing markets, I’ve learned one simple truth, economic policy always finds its way to your bottom line. The recent tariffs on steel, aluminum, lumber, and imported goods may not dominate the headlines, but they’re quietly reshaping the real estate landscape. As material and labor costs rise, builders are delaying or canceling projects, which is leading to fewer homes on the market and more upward pressure on both prices and rents. That’s creating a perfect storm for affordability issues, and it’s putting pressure on developers, investors, and homeowners alike.

For professionals in this business, understanding the ripple effects of these policies isn’t optional, it’s essential. Tariffs impact far more than just the cost of a 2x4 or a kitchen appliance. They influence mortgage rates, buyer confidence, construction timelines, and the overall pace of investment activity. As real estate agents, investors, and coaches, we must be ahead of the curve. This is not the time to sit back and react. It’s the time to lead with knowledge, guide clients through uncertainty, and make strategic decisions that keep us moving forward. The market is shifting. The question is are you ready to shift with it?