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Inside: How Tariffs Will Impact the Housing Market  💰️ + Build to Rent Boom 🚀 

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WHAT'S INSIDE

• 🔢 THE DATA

• 🤠 WHAT’S HAPPENING AROUND TOWN

• ⁉️ WHAT THIS MEANS FOR YOU

• 🤤 HOUSE WORTH DROOLING OVER

🔢 THE DATA

I’m an ex-dentist turned Realtor - let’s work together! Email me, tweet me or send me a carrier pigeon. 🐦️ 

Let’s chat about something super light and universally interesting - tariffs.

Now that I have your attention, let me make it quick:

• President Trump announced last week he will be taxing foreign steel and aluminum imports by 25%

• These tariffs will hit: Canada, Mexico, Japan and South Korea

  • *Canada is the top foreign supplier of aluminum and steel to the US. Mexico is third.

• Tariffs will go into effect March 12

• Domestic manufacturers and builders will see an increase in input costs due to tariffs

How much more expensive will the homes get?

• Tariffs could push home home construction costs up 4-6% over the next 12mo - these fees of course, will be passed onto buyers

• Potential new tariffs on Chinese steel can alter project budget by double digit percentages

• If builders choose to purchase materials domestically to avoid tariffs - we will have supply chain bottlenecks that can result in short term price hikes

There are concerns about inflation and long term effects to the US homebuilder and buyers market. I’ll keep y’all updated 👀 

Read more here and here.

🤠 WHAT’S HAPPENING AROUND TOWN

With the cost of home ownership continuing to feel unattainable for many working Americans - our friendly heroes in private equity have come to the rescue.

Their solution - build to rent.

What exactly is build to rent?
Homes are built for the expressed purpose of long term rentals. Large firms will buy hundreds of acres and build typical masterplan communities - except - instead of selling these houses, they’re exclusively listing them for rent.

Where is this happening?
All over Texas. Dallas’s pipeline is the 2nd in the US with 8,500 homes in process. Phoenix snags the top spot with 13,000 upcoming units. Houston, Austin and San Antonio rank fifth, sixth and eighth, respectively. Texas has the most upcoming built-to-rent units of any state. There are 4,600 units in Houston’s pipeline, 4,300 in development in Austin, and about 3,000 units coming to San Antonio. 

Why is this so popular in Texas?
It seems to be a combination of the states’ growth + lax regulations around developments.

How will this impact the housing market?
It’s too soon to say. Blackstone might lead you to believe there is no downside and that this will only benefit working class Americans unable to get on the property ladder. But we know better than to believe blindly by now.

Read more here.

⁉️ WHAT THIS MEANS FOR YOU

If you’re a buyer/seller/investor/renter or just interested in real estate - this weekly newsletter will help guide your decision making and help you better understand the market.

🤤 HOUSE WORTH DROOLING OVER

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