Tariff Disruption: Real estate experts clash with the future of American housing

The housing situation in America is riding the roller coaster of a post-pandemic era. Real Estate Experts It measures exactly how historical tariffs may or may not throw the industry for another loop.

“We’re really in a time of great crisis from a housing perspective,” Nectar CEO Derrick Barker told Fox News Digital. “It’s more important than ever to be positioning, to continue to support those on the frontlines and to act so that we can continue to support those who are building housing.”

“Obviously no one likes to pay more, but tariffs are something we may have to deal with… at the end of the day,” BH Group CEO and Founder Isaac Toledano also told Fox News Digital.

“I have to say President Trump is a smart businessman. He is a former developer. His family has invested heavily in real estate,” added Toledano. “I don’t think he wants to bring catastrophe to the US or the real estate market.”

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The two prominent names of the real estate appear to be split into opinions on tariffs after President Donald Trump’s April 2nd executive order officially made mutual tariffs. It caused a very volatile reaction On the stock market.

Despite the recent announcement of a 90-day suspension in tariffs, Barker remains bearish that higher costs could put more pressure on the already competitive real estate market, but Toredano is bullish that development will be affected.

“The immediate impact of tariffs is that (that) input costs are rising in an environment where they are already rising,” Barker said. “Uncertainty reduces the likelihood of lenders and equity providers and is more likely to slow down to provide capital, resulting in less liquidity in the market that helps build or buy new properties, build portfolios, and expand the portfolio.”

“In the long term, what we’ve seen in the past is that interest rates rise, tariffs rise, taxes rise, markets fall, that causes a recession.

“Every other day, we get more information about potential tariffs. It’s going to happen, it won’t happen,” said Miami-based Toledano. “Real estate, it’s a safe investment, a better investment.

“You talk to people, but they’re a little more careful,” Toledano expanded.

“If we look at the impact of tariffs, it’s going to take months. Over the last few months, President Trump hopes to negotiate good things and good deals for his partners.

“President Trump is a smart businessman. He is a former developer. His family has invested heavily in real estate. He doesn’t want to cause catastrophe in the US or the real estate market.”

-Isaac Toledano

last week, Mortgage fees have risen It’s back to about 7% following a short-lived DIP two weeks ago. Not only did the tariff fear hit the mortgage, but Barker confirmed that some of his industry peers stockpiled materials such as wood, concrete and glass. Toledano claimed that his South Florida affiliates saw nothing like that.

“They’re stockpiling. They think prices are rising, so they’re trying to get it now,” Barker said. “Many of them are local and regional and don’t have access to a huge pool of capital. So there’s not much stockpile you can have. And capital is not available right now. So, there are some stockpiles, but you can quickly get over those stockpiles.

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“As far as investors are concerned, we are in the process of closing the $200 million deal in the next 90 days. And we learned that everyone is excited and committed to these deals and that they are not worried about this volatility, to make sure they are on board with the investors because of what has happened in the last few days.

Both industry leaders agree that it is premature to tell you how high the tariffs are and how deep the impact will be, but they are completely different How the Federal Reserve System They may step in to support the market.

“What I say is, if interest rates drop, it would support current commercial property asset prices,” Barker said. “A lot of people want that… The Fed will come in and lower the fees, it’s just going to be a band-aid… There’s a lot of debt in the market. The US has a lot of debt in the market, and there’s a lot of uncertainty about it.”

“I think when things get out of control, the Fed will act and the fees will drop. And when prices go down, I think more buyers will feel comfortable setting up deposits in new constructions that need to close within two years,” Toledano retorted.

The head of the BH group believes that South Florida’s “boom” His group can continue to hedge against any market turmoil these days, in collaboration with names like the Ritz-Carlton and W. Barker.

“An apartment or property that survives the storm is an asset that has already been renovated and has a new appliance with a new system. Whether it’s newly constructed or new because it’s newly renovated, performs better because you can get a new one at a price that’s not real anymore,” Barker noted.

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“But it’s close to what will lead to the future economy, the economy of 2030,” Barker continued.

“Smart money continues to come to South Florida, and obviously people understand that Florida will not disappear,” Toledano said. “In the short term, we may have more of these roller coasters and concerns… but overall, I think there will be a strong momentum we’ve been enjoying here in Florida for the past six or seven years.”

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