On The Market New Tariffs Aimed Directly at Real Estate Investors (Who They’ll Affect)
Oct 7, 2025
Discover the impending impacts on the housing market due to new tariffs set for October 1st. Learn how these tariffs are driving up construction costs and affecting real estate investors. The podcast also explores the complications arising from a federal government shutdown, influencing mortgage rates and tenant sentiment. Additionally, find out how lapses in FEMA flood insurance could jeopardize coastal markets while crucial FHA servicing changes reshape the landscape for loan modifications.
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Shutdowns Dent Housing Sentiment
- A federal government shutdown mainly hurts sentiment and can reduce spending and transactions in the housing market.
- Short shutdowns are blips, but extended ones can materially lower transaction volume and investor confidence.
Plan For Section 8 Payment Risk
- If you rely on government-funded rents like Section 8, monitor shutdown risk and have contingency plans for missed payments.
- Be prepared to negotiate with tenants and adjust underwriting to account for potential payment interruptions.
Tariffs Will Raise Construction Costs
- New tariffs (50% cabinets, 30% upholstered furniture, 25% construction trucks) will raise construction and renovation costs.
- Higher input costs and limited foreign competition create room for domestic suppliers to raise prices gradually.