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s the market reels from President Trump's tariff announcement, a peculiar trend is emerging: real estate stocks are plummeting, but some analysts believe they may be poised to become a safe haven in the long run. The sudden drop has sent residential and commercial brokerages, REITs, and other industry players reeling, with publicly traded firms like Compass, Anywhere Real Estate, and Douglas Elliman seeing their shares fall nearly 6 percent.

    The tariffs, which impose a baseline 10 percent tax on most U.S. trading partners, are expected to have far-reaching consequences for the economy. Builders will face increased costs due to higher prices for foreign materials, leading to supply restrictions and cost increases on residential and commercial construction. The National Association of Home Builders estimates that the cost to build a single-family house in the U.S. could rise by as much as $10,000.

    Real estate investment trusts (REITs) have taken an even bigger hit, with Vornado and SL Green plummeting over 9 percent at the time of publication. Commercial brokerages Newmark and Jones Lang LaSalle are also down over 6 percent. However, Stephens analyst John Campbell sees a silver lining in the residential market, which he believes will be a "safe haven going forward" for investors.

    Campbell attributes the long-term upside to lower interest rates, which he predicts will accelerate with the market slowdown. He notes that home building will take an immediate hit, but existing home sales should benefit from mortgage rate drops. Campbell also sees potential in the Trump tariffs, which could lead to a reshoring of manufacturing and production facilities.

    While some economists are skeptical about the effectiveness of these measures, Campbell remains optimistic. "Tariffs are going to mean reshoring," he says. "Production facilities and manufacturing – those require capital investment." Rocket Companies, which has seen multiple multi-billion dollar deals in recent times, is one of the few companies that have bucked the trend, with its mortgage origination business poised to benefit from lower rates.