As a new report released by the National Association of Homebuilders projected that tariffs will raise the cost to build a new home by approximately $9,200, Joe Lombardo downplayed tariffs’ impact on Nevada’s housing market telling reporters that he’ll “make adjustments on the fly.” This comes after recent reporting from the New York Times found that Donald Trump’s tariffs could impact nearly 50,000 jobs in Nevada, including 66% of all jobs in Storey County. When asked last month by KSNV about prices going up in response to Trump’s newest cost-raising tariff, Joe Lombardo told reporters he “is not commenting on this topic.”
At a time when federal employees in Nevada, including veterans, are being indiscriminately laid off and unemployment, homelessness, and food insecurity continue to rise under Lombardo, Trump’s reckless and erratic tariffs will have devastating impacts on Nevada’s economy by driving prices up and killing jobs. Additionally, an independent study estimates that 25% tariffs on Canadian and Mexican imports will result in an average effective pay cut of nearly $1,000 for U.S. households.
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Las Vegas Review-Journal: Trump’s tariffs already hitting Las Vegas Valley’s real estate industry
Key points:
- The Las Vegas Valley’s real estate industry is already feeling the financial pain from the Trump administration’s tariffs and market uncertainty regarding the president’s economic policies, local executives say.
- Trump’s tariffs are already hitting the bottom line for a Las Vegas-based commercial contractor.
- “In the Las Vegas commercial construction industry, we’re directly feeling the impact of tariffs on steel and aluminum, both of which come from Mexico and Canada,” said Cory Frank, vice president of business development and project management for Nigro Construction, which has operated locally for 40 years, focusing on health care, retail and industrial projects. “While this is a dynamic situation that continues to change, our subcontractors are currently seeing anywhere from 10-15 percent increases in material costs, with some projections reaching 20-25 percent in the next few weeks.”
- The Trump administration has imposed tariffs of up to 25 percent on certain goods from the U.S.’s top two trading partners, Mexico and Canada, with additional 10 percent tariffs on goods from China. A recent CBRE Group Inc. report outlined that the automotive and constructions industries will most likely be the two hardest-hit sectors by the tariffs because of their interconnected supply chains in North America. Frank said this is already trickling down to their operation, but the industry is trying to adapt.
- “These increases are impacting budgeting and project timelines, but as a contractor, our priority is making financially responsible choices that help our clients save as much as possible while keeping projects on track,” he said. “While tariffs are pushing costs higher, we and our subcontractors are doing our best to stay ahead of them by planning purchases in advance and making smart sourcing decisions.”
- The CBRE report said tariffs will hit all aspects of the real estate industry, but some will feel the effects more acutely than others.
- “Tariffs can also have a material impact on the cost of commercial real estate construction. Some property types will be more affected than others. For example, industrial projects will be less impacted than multifamily projects given different equipment and materials requirements,” the report said. “Assuming 25 percent tariffs on Mexican and Canadian goods, as well as higher tariffs on Chinese imports, construction costs for commercial projects could increase by between 3 and 5 percent which could persuade developers to put some projects on hold.”
- The National Association of Homebuilders said in a new report released March 21 that tariffs are projected to raise the cost to build a new home by approximately $9,200 and softwood lumber costs are up 11.7 percent compared to this time last year.
- This has put an additional strain on an already strained market said the report, as approximately 110.6 million households are already priced out of the residential real estate market across the U.S. An estimated $1,000 increase in the median price of a home in the country would further push an additional 115,593 people out of the market, the report said.
- Tia Roman, a local broker and Realtor with Re/Max, said potential buyers and sellers are thinking now is the time to act, given economic uncertainty could make the market even more unaffordable as costs to build homes invariably go up.
- “Everyone is thinking prices are going to go up (due to tariffs), and, of course, they are especially on new builds,” she said. “But even existing homes, a lot of people end up putting money into a home before they sell it.”
Nevada Current: Lombardo downplays concerns about impact of Trump tariffs
Key points:
- Republican Gov. Joe Lombardo on Tuesday downplayed concerns about the potential consequences of tariffs and other economic policies imposed by the Trump administration, saying Nevada will “make adjustments on the fly.”
- When asked about Trump tariffs driving up the cost of constructing new homes, Lombardo acknowledged that “tariffs are the great unknown,” before pivoting to saying his housing legislation is designed to be flexible enough to react to the needs of developers.
- “We’ll make adjustments on the fly,” he said.
- Housing groups have warned that Trump tariffs on lumber, steel, aluminium and other key goods will increase the cost of constructing homes. The National Association of Home Builders, whose Southern Nevada affiliate participated in Lombardo’s press event Tuesday, have estimated that 7% of all goods used in new residential construction are imported.
- When asked about Trump’s broader economic policies and their potential negative impact on Nevada’s economy, Lombardo responded that it is the obligation of the governor and the Legislature to identify the state’s needs and prioritize.
- Early data suggests international visitation to the United States is rapidly declining due to concerns about Trump’s trade wars, immigration enforcement without due process, and outlandish proposals to buy or take over other countries.
- Lombardo, who was endorsed by Trump, has previously said that “Trump will bring down the rising costs of housing, groceries, and gas” and “oversee a new era of American prosperity.”
- He expressed none of that enthusiasm Tuesday.
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