As global trade tensions continue to escalate, particularly with the ongoing U.S.-China trade war, local real estate markets—including Raleigh-Durham—are beginning to feel the ripple effects. Tariffs on imported goods, increased construction costs, and shifts in economic confidence could shape the Triangle’s housing and commercial real estate landscape in the coming months.
Rising Construction Costs & Housing Affordability
One of the biggest concerns for the Triangle’s real estate market is the rising cost of new construction. Tariffs on steel, aluminum, and lumber have led to higher material prices, making it more expensive for builders to develop new homes, apartments, and commercial properties. This could result in:
• Higher home prices: Builders may pass increased costs on to buyers, making homeownership less affordable.
• Reduced housing supply: Some developers may slow down projects, exacerbating inventory shortages.
• Higher rental rates: Fewer new apartments coming to market could drive up rents, impacting affordability for renters.
Impact on Local Businesses & Commercial Real Estate
The Research Triangle is home to many tech companies, startups, and manufacturers that rely on global supply chains. If tariffs continue to disrupt trade, businesses may delay expansion plans, reducing demand for office, industrial, and retail space. Key effects include:
• Slowdown in corporate relocations: Companies may reconsider moving to the Triangle if economic uncertainty persists.
• Weakened demand for commercial real estate: Fewer expansions mean less need for office and industrial space.
• Retail struggles: Higher costs for imported goods could hurt local retailers, affecting shopping centers and mixed-use developments.
Investment & Mortgage Rate Uncertainty
Economic instability often leads to volatility in mortgage rates. While uncertainty may push rates lower in the short term, inflationary pressures from tariffs could eventually cause them to rise, making borrowing more expensive for homebuyers and investors. Potential effects include:
• Hesitation among investors: Uncertainty may lead to a “wait-and-see” approach, slowing real estate investment activity.
• Fewer homebuyers: Higher interest rates could reduce affordability and dampen demand.
Opportunities for Buyers & Sellers
Despite potential headwinds, the Raleigh-Durham market remains strong due to its economic growth, job opportunities, and population influx. Buyers and investors should monitor economic trends while sellers should take advantage of current demand before potential slowdowns.
If you’re thinking about buying, selling, or investing in the Triangle, staying informed about these economic shifts is key. Contact me for expert insights and strategies to navigate the changing market.
Stay updated with exclusive tips and market insights by subscribing to our weekly newsletter.
Don’t miss out on any price drops or new listings! Sign up for property alerts and save your searches and favorite properties. Begin your real estate search and never miss a great opportunity.
We are looking forward to reading your comments and questions below.
