Tariff Talks and Real Estate—What Ongoing Trade Shifts Could Mean for Property Markets

While campaign season heats up, the current administration has been quietly reshaping key trade policies behind the scenes. In recent weeks, we’ve seen new tariff agreements reached with some trade partners, while negotiations with others—notably China and the EU—remain unresolved.

So what does this have to do with real estate?Quite a bit, actually.

Tariffs don’t just influence the cost of imported goods—they impact the price and availability of construction materials, home finishes, and even investor behavior across real asset markets.

Key Tariff Impacts to Watch

📦 Construction CostsIf new tariffs are imposed—or old ones reinstated—on materials like lumber, steel, aluminum, or appliances, we could see upward pressure on building costs, especially for new development and high-end renovations.

🧱 Supply Chain DelaysTrade uncertainty can slow down the delivery of imported goods, a challenge already familiar to buyers building or furnishing high-end homes. Longer lead times can impact everything from custom cabinetry to heating systems.

📊 Investor BehaviorPeriods of trade tension often spark volatility in public markets. This can trigger capital rotation into tangible, stable assets like real estate—something we witnessed during the 2018 tariff wave and again during COVID-era supply shocks.

Even in Vail and Beaver Creek, these macro trends are showing up in subtle but measurable ways. New construction costs have increased roughly 15–20% over the past two years, largely driven by materials pricing, labor shortages, and extended lead times. That has had a direct impact on buyer behavior—pushing more demand toward finished, move-in ready homes that avoid those uncertainties altogether.

If you have questions about how these trends are affecting our local market—or want to discuss how broader shifts could impact your real estate planning—I’d love to talk. Feel free to call or email anytime.