T
he real estate sector is bracing for the impact of new tariffs, which could raise builder costs by $2,500 to $5,000 per home. The National Association of Home Builders' chief economist warns that a third of US lumber comes from Canada, and increased costs will significantly affect homebuilders. Forest Economic Advisors' Paul Jannke expects Canadian producers to stop shipping lumber due to the 25% tariff, driving prices higher as dealers step up purchases ahead of the building season.

    Realtor.com's Danielle Hale notes that rising costs due to tariffs will leave builders with few options: pass on higher costs to consumers or build smaller homes. Amidst this uncertainty, the housing market is "in a deep freeze," according to Moody's Analytics chief economist Mark Zandi, who attributes it to low inventories and high mortgage rates.

    To identify the 10 best performing real estate stocks, we screened for companies with significant gains over the past year and shortlisted those with the highest upside potential. The list includes Jones Lang LaSalle Incorporated (NYSE:JLL), which will be compared to other top-performing real estate stocks in this article.