T
he Coachella Valley's housing market is bracing for a potential shockwave from Trump's tariffs. The ripple effect of higher construction costs could be felt throughout the region, as developers struggle to absorb the added expenses.

    A significant portion of imported building materials, including lumber and gypsum, originate in Canada and Mexico. While Canadian lumber currently enjoys an exemption from the 25% national security tariff, a shift in policy could have far-reaching consequences.

    According to the National Association of Home Builders, a 14.5% tariff on Canadian lumber would add approximately $9,200 to the average home price. This increase could be passed on to buyers, making homes less affordable for first-time buyers and exacerbating existing affordability concerns.

    However, some industry experts remain optimistic. Christina Ewalt, a real estate agent with GHA Companies, predicts that interest rates will drop by year-end, potentially falling into the fives from their current mid-to-high sixes. This could provide a welcome respite for homebuyers and help mitigate the impact of rising construction costs.

    As the Coachella Valley's housing market navigates this uncertain landscape, developers are exploring ways to adapt. GHA Companies CEO Mario Gonzales is working closely with trade partners to secure lumber supplies in advance, hoping to minimize the effects of any potential tariffs.