How Tariffs Affect Construction and Housing Costs in Massachusetts

By Chris Doherty

Christian Doherty lists and sells more homes than any other agent in the Greater Lowell, Massachusetts market with over 300 homes sold in the past 12 months. Chris is ranked in the top 1% of all agents in the United States.

How do tariffs affect real estate investments? We’ve seen the U.S. impose and reverse tariffs,, and now tensions with China are front and center. If you’re holding residential, commercial, or multifamily property, it’s natural to ask: how does this affect me? I’ll walk through what these trade moves mean for real estate and what you need to keep in mind.

Tariffs are raising material costs. The U.S. is currently imposing tariffs on several trade partners, especially China. It might seem unrelated to real estate, but these tariffs are making building materials like lumber, steel, and appliances more expensive. As a result, builders are delaying or canceling projects, which leads to slower construction and tighter inventory in areas like Massachusetts and New Hampshire.

Uncertainty makes buyers hesitate. Tariffs don’t just impact building materials—they also affect confidence. When people hear about economic uncertainty, they start to hesitate. Buyers are questioning if now’s the right time to act while keeping a close eye on interest rates and the economy. This hesitation can lead to fewer offers and longer wait times when selling.

Now might be the best time to sell. Even with all the uncertainty, the market is still active. Interest rates have been steady, and multiple offers are still common. So if you’re thinking of selling in the next one to three years, it would make sense to act sooner rather than later. Waiting too long could mean missing the current window of strong buyer demand.

Investors are feeling the squeeze. Multifamily and commercial investors are also starting to feel the pressure. Rising costs for things like water, insurance, and maintenance are cutting into profits. If your margins are shrinking, it might be time to rethink your strategy. Long-term investors may be used to these market shifts, but people who are planning to sell or reposition properties soon should take a closer look.

Renters may see rising costs too. When expenses go up for landlords, those increases often show up in rent. If maintenance and repairs are more expensive, landlords will likely pass that on. The broader impact of tariffs and inflation may hit renters sooner than expected.

No one can time the market perfectly, but you can plan. Whether you’re selling, investing, or just figuring things out, now’s the time to look at the facts and make a smart choice. Don’t hesitate to call me at 978-746-0124 or send an email to chris@dohertyproperties.com if you have any questions. I am happy to help.