Trump’s Tariffs Backfired? Here’s What It Means for Homeowners

Most people hear “tariffs” and think of imported cars or Chinese electronics getting more expensive. But here’s the thing—tariffs don’t just hit big corporations. They have a sneaky way of creeping into the cost of building materials, home renovations, and even rent prices. 

And if you’re in the business of property investing, or you’re just trying to buy a home, this could change the game for you.

So, are Trump’s tariffs going to trigger a real estate boom? Or are they going to cause a market crash that wipes out home values? Let’s break it down.

What Do Tariffs Have to Do with Real Estate?

Quick refresher: A tariff is basically a tax on imported goods. The idea behind Donald Trump’s tariffs is to make foreign products more expensive so that American businesses can compete. Sounds good on paper, right? Well, not always.

Back in 2018, Trump’s tariffs hit steel and aluminum hard—jacking up prices by 25% and 10% respectively. Almost overnight, the cost of construction materials shot up. And guess what? When construction costs rise, so do home prices. 

In fact, lumber prices alone have surged by about 133% over the past year, making it more expensive to build new homes.

But it doesn’t stop there. If new tariffs come into play, expect another spike in building materials, which means:

• New homes will be more expensive to build.

• Renovating or flipping houses will cost more.

• Home prices and rents will likely increase.

See where this is going? Whether you’re a buyer, investor, or renter, Trump’s tariffs could make homeownership even more expensive.

How Homeowners Will Feel the Heat

If you already own a home, you might be thinking, “Well, I’m good then.” Not so fast.

Higher construction costs don’t just affect new builds. They also make repairs and renovations pricier. Need a new roof? A kitchen remodel? Want to build an addition? All of that will cost more. And if you’re renting out properties, your real estate strategies will have to adapt—because higher costs for landlords mean higher rents for tenants.

But the biggest concern? A potential market crash. If prices rise too fast and people can’t afford homes anymore, we could see a slowdown in sales. And when demand drops, so do home values.

Are There Any Hidden Opportunities?

Before you start panicking, let’s talk about the hidden opportunities in all this. Every economic shift creates winners and losers, and if you know where to look, there’s still money to be made in real estate investing.

1. The Revival of U.S. Manufacturing Could Create New Housing Hotspots

With Trump’s tariffs pushing companies to move factories back to the U.S., we could see a boom in certain cities—especially in places with growing manufacturing jobs. In fact, construction spending hit $237 billion last year, an 86% increase from 2022.

That’s great news for real estate investors who know where to buy. Look at markets like:

• El Paso, TX & Chattanooga, TN – Rent growth between 6-8%.

• Salt Lake City & Reno, NV – Expected rent growth of 9-11% in tech-driven areas.

• Raleigh, NC & Tampa, FL – Consistent 5-7% rental increases in Sunbelt states.

Investing in rental properties in these cities could be a smart move, even as construction costs rise.

2. Converting Office Buildings into Housing is a Huge Opportunity

There’s a housing shortage of 4.4 million units in the U.S. right now. With office vacancies rising, investors are already converting old commercial buildings into apartments and condos. The return? 15-20% profit margins on some conversions.

If you’re serious about real estate investing, you should be keeping an eye on this trend. And if you don’t know where to start, check out Mailmix—it automates your direct mail campaigns, helping you target motivated sellers without the hassle.

3. Renovation Strategies Can Save Investors Thousands

New construction is getting more expensive, but that just means smart investors are focusing on existing properties. Rehabbing older homes instead of building from scratch can save 20-30% on costs.

Here are some real estate secrets pros are using to adapt:

• Lock in material prices early – Contractors are securing prices before tariffs hit harder.

• Buy properties that need cosmetic fixes, not major structural work – Cheaper to flip.

• Invest in markets where labor is still affordable – Helps offset rising construction costs.

What Smart Investors Should Be Doing Right Now

Want to make sure you don’t get burned by Trump’s tariffs? Here’s how to play it safe:

• Partner with trade schools – 80% of contractors are struggling with labor shortages, so investors are teaming up with schools to train workers and secure affordable labor.

• Use AI to find undervalued properties – Some tools can help you spot homes priced below market value before everyone else.

• Diversify your investments – Spreading your portfolio across different cities and property types can protect you from major economic shifts.

And if you really want to get ahead, why not pick the brain of a pro? You can Golf with Matt and talk real estate strategies while playing 18 holes. Who said business can’t be fun?

Will Trump’s Tariffs Backfire or Create a Boom?

So, will Trump’s tariffs backfire on homeowners? Well, it depends. If you’re trying to buy, renovate, or build, rising construction costs could make things tougher. 

But if you’re strategic about property investing, you could actually find some incredible hidden opportunities—especially in markets where manufacturing is booming or office conversions are taking off.

The 2025 economy is going to look different, but change always brings opportunity. The key is knowing where to look.

And if you’re ready to start building wealth through real estate investing, you don’t have to do it alone. With the right strategy (and maybe a little guidance from the pros), you can turn today’s uncertainty into tomorrow’s success.

Ready to make your next move? Let’s talk.