Trump’s Tariffs and the Real Estate Ripple: What They Mean for Dallas-Ft Worth Investors
When President Trump dropped the news of a 10% universal tariff on all imports yesterday—plus additional, steeper rates for countries like China, the EU, and Japan—the stock market shuddered. The Dow dropped over 1,200 points. Investors scrambled to make sense of what it all means.
Here’s what we know for sure: uncertainty is back. But for real estate investors—especially those focused on long-term rental income from existing homes—this could be a moment of opportunity.
Let’s break it down from the perspective of boots-on-the-ground investing in Dallas Metroplex.
Construction Just Got Pricier—Again
If you’ve been following the new construction market in North Texas, you know the story already: building homes isn’t cheap, and it’s not getting cheaper. But these new tariffs could throw gasoline on that fire.
A significant portion of the materials used in new home construction—steel, lumber, appliances, wiring—comes from abroad. Canada alone accounted for over $8 billion in steel exports to the U.S. in 2024, much of which fuels building across Texas. According to the National Association of Home Builders, 7% of the materials used in U.S. homebuilding are imported—but that share is often higher in Texas due to the state’s growth demands and geographic reach.
Dallas is no stranger to development. In 2023 alone, over 52,000 new residential construction permits were issued across the Dallas-Fort Worth metro area, making it one of the most active building markets in the country. But with the cost of imported materials rising, many builders are expected to either delay projects or adjust pricing.
And speaking of pricing—tariff-driven cost increases don’t just squeeze developers. They show up in the final price of the home, often immediately. Industry estimates suggest tariffs could raise Dallas-area new home prices by $18,000 to $25,000 per unit, depending on size and materials used. For many buyers, that’s enough to be priced out entirely.
Why That’s Good News for Owners of Existing Homes
If you already own a home or an investment property in Dallas—especially an affordable one—you’re sitting in a better spot than you might think.
Here’s the effect in motion:
New homes get more expensive.
More would-be buyers get pushed to the sidelines.
Demand for rentals increases, especially those priced below replacement cost.
At SolMidas, we help investors purchase and hold existing single-family homes, many of which are eligible for Section 8 tenants through the Housing Authority. These are typically not newly built, and while not yet tenanted at time of purchase, they’re in neighborhoods with consistent rental demand and limited turnover. As new construction costs rise, these existing homes start to look more and more attractive.
The Labor Piece: An Underdiscussed Factor
Materials aren’t the only part of the cost equation. Labor is equally critical—and Texas construction runs on immigrant labor. In fact, over 40% of the construction workforce in Texas is foreign-born, and nearly a quarter of that workforce is undocumented, according to the American Immigration Council.
If tighter immigration policy accompanies the new tariffs—and all signs suggest it might—builders could be looking at both higher wages and fewer available workers. Delays become more common. Costs creep up again. And it gets harder and harder to build homes at the pace needed to meet demand.
For Long-Term Hold Investors, This Is a Tailwind
For existing investors, this environment reinforces what many already suspected: owning real estate is still one of the few ways to stay insulated from global shocks.
And while some new investors may worry about higher acquisition prices or greater competition, that demand shift can actually be a benefit. More investors looking to get in = more confidence in the local market. But more importantly, more households will turn to renting if they can’t afford to buy—and that means stable rental demand for years to come (higher market rent rates drive Housing rents as a result).
We’re already seeing signs of this trend. In several neighborhoods around Dallas, builders are rethinking their long-standing policies against selling to investors. Why? Because higher-priced homes are harder to move, and investors are still buying—especially when they know how to operate for cash flow and long-term appreciation. We’ve recently toured two new construction sites in Ft Worth and Providence Village that are now available to investors.
Final Thoughts
While media headlines may focus on tariffs, trade wars, and Wall Street’s swings, the story beneath the surface is this: existing housing just became even more strategic. It’s harder to build new. It’s more expensive to do so. And the tenants still need places to live.
For investors who already own property—or those considering their next move in Dallas Ft Worth—this might be the most overlooked buying window we’ve seen since early 2021, when rates were still low, inventory was limited, and savvy buyers quietly locked in deals before the broader market caught on.
Want to talk strategy or see the latest available homes in our pipeline? Let’s connect. We’ll help you navigate the data, understand what’s shifting, and plan your next smart investment.