Trump’s Tariffs Are Shaking Things Up: What It Means for Atlanta’s Real Estate Market

If you’ve caught the headlines, you know President Trump’s latest tariff announcements have stirred things up—and not just on Wall Street. These moves could have a big impact right here at home, especially in Atlanta's housing market.

Let’s break it all down—what the tariffs are, how they affect housing and construction, and most importantly, what it means for buyers and sellers navigating the 2024 market.

Tariffs 101: Why It Matters to Metro Atlanta

These new tariffs are raising the cost of imported goods like steel, lumber, aluminum, and other essential building materials. Fed Chair Jerome Powell recently warned that this could lead to higher inflation and slower economic growth.

That kind of economic ripple effect hits close to home. For Atlanta, a growing city where new construction is everywhere, higher costs mean slower projects and more expensive homes.

New Construction Is Getting Hit Hard

If you’ve driven past any half-built communities lately, you may have noticed delays. Builders are already struggling with supply chain issues—now add tariffs on key materials, and the cost to build a home is surging.

According to the National Association of Home Builders (NAHB), lumber prices are still up about 20% from pre-pandemic levels. New tariffs could push those prices even higher, putting pressure on every stage of the building process.

Now throw in labor shortages. Roughly 14% of construction workers nationwide are undocumented, per the Pew Research Center. As immigration enforcement tightens, the available workforce shrinks. That means fewer workers, slower builds, and rising labor costs. Builders may pause projects or pass added costs to buyers.

Buyers Feel the Pinch—Especially First-Timers

Atlanta's median home price is hovering around $400,000, and interest rates are staying in the high 6% range. Add inflation from higher tariffs, and buyers—especially first-time ones—are feeling squeezed.

People are already struggling with gas, groceries, and everyday expenses. The idea of saving for a down payment feels even more out of reach as the cost of living continues to rise. According to the NAHB, even a $1,000 increase in construction costs can price out 153,000 households nationwide.

Expect buyer demand to cool, particularly at the entry level where every dollar counts. But that could also mean more negotiating power for buyers who are ready to act.

Sellers: What Should You Expect?

Less competition from new builds may help resale home prices stay strong, but increased affordability challenges could cause listings to sit longer.

We’re starting to see signs of this around neighborhoods like Marietta and Decatur, where homes are lingering longer than they were just a few months ago. If you’re selling, it’s important to price strategically and prepare your home to shine.

Real Estate Takeaway: Change Brings Opportunity

Tariffs and labor issues may slow the market, but that doesn’t mean it’s all bad news. Slower markets can create opportunity for buyers to negotiate better deals and for sellers to capture attention when inventory shifts.

If you're thinking about buying or selling in Atlanta, now is the time to get informed and be strategic. A knowledgeable real estate partner can help you navigate these changing tides.

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Atlanta’s real estate market has grit—and so do you. Let’s navigate what’s next, together.