T
he Las Vegas Valley's real estate market is facing a perfect storm of uncertainty, with the Trump administration's tariffs and economic policies casting a long shadow over the industry. Local executives are sounding the alarm, warning that the tariffs are already taking a toll on construction costs and project timelines.
For Nigro Construction, a 40-year-old Las Vegas-based commercial contractor, the impact is being felt firsthand. "We're seeing material cost increases of 10-15 percent, with some projections reaching as high as 20-25 percent in the coming weeks," said Cory Frank, vice president of business development and project management.
The tariffs, which have been imposed on goods from Mexico, Canada, and China, are having a ripple effect throughout the industry. A recent report by CBRE Group Inc. noted that the automotive and construction sectors will be among the hardest hit, due to their interconnected supply chains in North America.
While Frank's company is trying to adapt to the changing landscape, he acknowledged that tariffs are pushing costs higher. "We're doing our best to stay ahead of them by planning purchases in advance and making smart sourcing decisions," he said.
The impact on homebuilders is also being felt, with the Southern Nevada Home Builders Association reporting a slight dip in permits for new home construction this year. According to Tina Frias, CEO of the association, the housing market is facing a number of challenges, including availability of land, regulatory environment, and labor constraints.
While tariffs have not yet directly impacted home prices, Frias noted that uncertainty and market volatility are creating a sense of unease among builders. "Given the many unknown variables associated with tariff negotiations, making definitive long-term predictions about their impact on the housing market would be premature," she said.
The National Association of Homebuilders recently released a report estimating that tariffs will raise the cost to build a new home by approximately $9,200. This has put an additional strain on an already strained market, with an estimated 110.6 million households priced out of the residential real estate market across the U.S.
As prices continue to break record highs and mortgage rates remain elevated, potential buyers and sellers are thinking now is the time to act. "Everyone is thinking prices are going to go up due to tariffs, and they're especially on new builds," said Tia Roman, a local broker and Realtor with Re/Max. "But even existing homes, a lot of people end up putting money into a home before they sell it."
