GHA Companies navigating changing real estate landscape amid Trump tariffs

Trump's tariffs could significantly impact the cost of new homes in the Coachella Valley. Tariffs can significantly impact the real estate market by raising construction costs for materials like steel, lumber, and aluminum, which directly affects home prices.

The National Association of Home Builders (NAHB) estimates that 72% of imported lumber comes from Canada and 74% of imported gypsum, used for drywall, comes from Mexico. However, for new-home buyers, Canadian lumber is currently exempt from the 25% national security tariff imposed by the Trump administration. "A huge amount of lumber comes across the borders, and it’s definitely gonna affect us," said GHA Companies CEO, Mario Gonzales. "The thing that we’re doing is working closely with our trade partners and try to buy it in advance if we can.”

If tariffs on Canadian goods do go into place, the NAHB found that a 14.5% tariff on Canadian lumber could add an estimated $9,200 to the average home price.

As construction costs rise, developers may pass these expenses onto buyers, making homes less affordable, especially for first-timers. However, GHA Companies Real Estate Agent Christina Ewalt expects interest rates to drop, predicting they could fall into the fives by year-end, down from the mid to high sixes.

News Channel 3 is speaking with GHA Builders about how these tariffs could impact the market in the Coachella Valley.