New Tariffs Aimed Directly at Real Estate Investors (Who They’ll Affect)
Summary
New tariffs on kitchen cabinets, furniture, and construction trucks, implemented October 1st, could significantly increase costs for real estate investors, including STR hosts. This could impact renovation and new construction costs, potentially making it harder to maintain profitability.
Key Insights
- •New tariffs implemented on October 1st include 50% tariffs on kitchen cabinets, 30% on upholstered furniture, and 25% on construction trucks.
- •Even American-made goods are experiencing price increases due to higher input costs from tariffs on materials.
- •Construction costs are already high, and these tariffs will likely increase them further, impacting new construction and renovations.
Action Items
- ✓Consider the impact of these tariffs on your renovation and new construction budgets, adjusting as needed.Effort: mediumImpact: medium
Watch Out For
- ⚠Failing to account for increased material costs due to tariffs can negatively impact profitability for renovation projects and new construction.
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