How Construction Tariffs Are Impacting Real Estate Investments

Smart Strategies to Protect Your Property Portfolio From Rising Material Costs

At Treasure Property Group, we're closely monitoring how recent tariffs on construction materials are creating ripple effects across the real estate market. While these economic shifts might seem abstract, they're directly affecting property values, renovation costs, and investment returns. Our team has identified key trends and developed proven strategies to help property owners and investors navigate these changes successfully.

THE TARIFF IMPACT

Key Cost Increases:

• Steel prices up 12-18% year-over-year
• Aluminum products now 15-22% more expensive
• Average construction costs rising 8,500−8,500−12,000 per residential unit

Market-Wide Effects:

• New development projects facing 6-9 month delays
• Renovation budgets increasing 7-10% for typical properties
• Landlords adjusting rent prices to offset maintenance costs+

INVESTMENT STRATEGIES

Focus on Existing Inventory

• Target properties needing cosmetic rather than structural updates
• Our clients save 18-25% by avoiding new construction premiums

Focus on Existing Inventory

• Treasure Property Group's vetted network offers 10-15% material discounts
• Case Study: Recent client saved $24,000 on commercial renovation

Value-Add Opportunities

• Properties with renovation potential provide built-in equity
• Ideal candidates include those needing: Kitchen/bath updates Flooring replacements Exterior refreshes

LONG-TERM SOLUTIONS

Portfolio Diversification

• Balance new and existing property investments
• Consider mixed-use assets less dependent on residential materials

Cost Management Techniques

• Phase renovations to align with material price fluctuations
• Bulk purchasing for multi-unit properties

Market Timing Insights

• Seasonal buying opportunities (typically Q3-Q4)
• Emerging neighborhoods with lower construction demand

What’s Next?

While construction tariffs present challenges, they also create opportunities for informed investors. At Treasure Property Group, we're helping clients adapt their strategies to not just survive, but thrive in today's market. Want a personalized analysis of how these trends affect your properties? Schedule your complimentary consultation with our investment specialists today.  Get Expert Advice

Source: Buildium