Tariffs and Turbulence: How Realtors Can Survive the Real Estate Shakeup

In 2025, tariffs are no longer just background noise in economic policy—they're reshaping the real estate market in real time. From material costs skyrocketing to construction delays and nervous buyers, realtors across the United States are feeling the pinch. But with challenge comes opportunity—if you're willing to pivot.

Let’s break down what’s happening and how realtors can stay ahead.

How Tariffs Are Disrupting the Market

1. Construction Costs Are Soaring

Tariffs on imported goods—especially steel, aluminum, and lumber—have driven up the cost of building materials significantly. This isn’t just a builder’s problem. It means fewer new homes on the market, delayed developments, and more competition for existing properties.

2. Affordability Is Slipping Away

Higher material and labor costs mean developers are passing expenses on to buyers. That $400K new build might now be $425K—or more. With mortgage rates also hovering at decade highs, the dream of homeownership is drifting further out of reach for many buyers.

3. Uncertainty Is Shaking Investor Confidence

Commercial real estate is also taking hits. Tariff-related price volatility and general economic uncertainty are causing developers and corporate tenants to pause or cancel major projects, slowing commercial transactions and leasing activity.

4. Delayed Projects = Delayed Paychecks

For realtors, every stalled project means fewer listings, delayed commissions, and a more competitive market for available inventory.

What Realtors Can Do to Stay in the Game

1. Stay Educated, Stay Ready

Tariffs, trade policies, and supply chains may feel far removed from your daily work—but they directly affect your clients. Being able to explain how macroeconomic shifts impact local inventory or pricing gives you an edge and builds trust.

Tip: Subscribe to newsletters from NAR, NAHB, and economic research firms for bite-sized updates you can use in conversations.

2. Partner Smart with Builders and Lenders

Develop relationships with builders who are adapting by using alternative materials or innovative designs to keep costs down. Also, lean on mortgage brokers who can offer creative financing solutions to help your buyers navigate rising prices.

3. Expand Into Investment and Commercial Niches

If residential slows, explore opportunities in rental investments, multi-family properties, or small commercial leasing—markets that may remain active even during downturns.

4. Double Down on Local Expertise

With buyers more cautious, hyperlocal knowledge becomes your superpower. Know which neighborhoods are holding value, which school districts are still driving demand, and what developments are (or aren’t) going up nearby.

5. Embrace Education-Based Marketing

Create content that educates—not just sells. Webinars, blog posts, or social media updates about how global issues like tariffs affect home buying can help position you as a resource, not just a salesperson.

6. Think Long-Term

Markets are cyclical. Use slower seasons to invest in your brand, build relationships, and strengthen your business systems. The agents who treat this like a career—not a hustle—are the ones who’ll survive and thrive.

Final Thoughts

Tariffs may be out of your control, but how you respond isn’t. Real estate has always been a game of adaptability, and today’s market is no different. By staying informed, being proactive, and expanding your skill set, you can weather the storm—and maybe even come out stronger.

Stay scrappy, stay smart, and keep serving your clients like the expert you are.

For more personalized advice on how these changes impact your real estate business, contact Jae Smith, founder and Real Estate Broker and advisor for Plush Properties Luxury Real Estate.