April 14, 2025 • 4 mins
Chris reveals how tariffs are driving up real estate costs by 25%, stalling new construction and causing deals to collapse. From wealthy buyers backing out to builders adding "Trump tariff" surcharges, the housing shortage is set to worsen. Existing properties may rise in value, but at what cost? www.watchdogonwallstreet.com
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski tariffs.
Speaker 2 (00:16):
In real estate.
Speaker 3 (00:17):
Yeah, I am spoken, but various different people, different parts
of the country, some very big real estate people, and
it's it's it's pretty much the same across the board.
Their costs are going up by twenty five percent. That's
that's what they feel that their their costs, how their
(00:38):
costs are going to rise on anything new that they
are going to build. Various different people I spoke to
as well said that, you know, deals are falling through.
They've tried to reach out to some of the people
that were investors were going to be buying into some
of these properties that they were going to do, and
(00:59):
they said, no, Moss, no, Moss, put that, put that
on hold, put that on hold. We are not going
to do that doesn't make sense for us.
Speaker 2 (01:11):
Uh. And this is this is across the board. People.
You're now starting to see speak of people.
Speaker 3 (01:19):
In the uh, the realtors out there, and I'll see
a couple of stories as well, talking about how wealthy
buyers are now backing out of you know, multi million
dollar home deals. What's going to happen is it's gonna
it's gonna cause a lot of this stuff a massive slowdown,
massive slowdown to almost to stop in certain industries. Now again,
(01:42):
this will have a bit of a flip to it
in the sense that existing stock is going to.
Speaker 2 (01:47):
Go up in value.
Speaker 3 (01:49):
It's going to go up in value because people aren't
going to go ahead and building anything.
Speaker 2 (01:54):
But this is this is a problem moving forward.
Speaker 3 (02:00):
We've talked about in fact, the high cost of housing
here in the United States, the need for us to
build more homes. You just made the costs of those
homes go up by twenty five percent because of these tariffs.
Speaker 2 (02:16):
It's not going to end well. Not going to end well.
Speaker 3 (02:21):
And this is why these things got to get taken
care of sooner rather than later. Another big real estate
magnet for crying out a looud Barry Sternlicht, talking about
this as well. He thinks that it's going to be
an absolute disaster.
Speaker 2 (02:38):
WI. This is really bad.
Speaker 3 (02:39):
It says, we need Canada's lumber, or we can shop
down our own trees. But it's a bad thing. We
run an equal trade deficit with Canada other than oil,
but we use their oil. If we don't buy it,
they're going to ship it to Asia. For existing owners
of real estate, it's good because to build a new
building will be more expensive, so the existing often stock,
(03:00):
the existing apartment stock.
Speaker 2 (03:02):
Is going to be worth more. But it's bad because
the numbers won't work to create new buildings. You won't
be able to build anything.
Speaker 3 (03:11):
So we already have a four to five million dollar
housing shortage, and you're seeing in the sentiment of the
builders that they're nervous.
Speaker 2 (03:20):
Everyone's nervous. Of course, are.
Speaker 3 (03:24):
Of course are And again you know, for for people
out there that that already cut deals to buy a home,
we're already hearing that the builders coming back and saying,
I can't, I can't build this house for you now,
can't do it.
Speaker 2 (03:39):
My costs went up that much.
Speaker 3 (03:42):
And you're gonna you're gonna see more and more and
more of that across the board.
Speaker 2 (03:45):
Another thing that you're going to see as well is.
Speaker 3 (03:50):
Line line item charges, line item charges, Trump tariff tax
on bills.
Speaker 2 (03:57):
It's kind of this.
Speaker 3 (03:59):
Is not our fault, not our faults this, these tariffs
not a fault, whether they're going to actually put line
items on checks, and it's happening already. Companies are adding
tariffs surcharges to invoices, passing costs to consumers, and highlighting
the impact of tariffs. They're calling it the uh Trump
tariff on the bill. This again, this will slowly but
(04:23):
surely work into the president's approval rating. Needs to act
fast again, needs some of these deals done, and we
need to put this behind us sooner rather than later.
Speaker 2 (04:41):
Watchdog on Wall Street dot com
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski tariffs.
Speaker 2 (00:16):
In real estate.
Speaker 3 (00:17):
Yeah, I am spoken, but various different people, different parts
of the country, some very big real estate people, and
it's it's it's pretty much the same across the board.
Their costs are going up by twenty five percent. That's
that's what they feel that their their costs, how their
(00:38):
costs are going to rise on anything new that they
are going to build. Various different people I spoke to
as well said that, you know, deals are falling through.
They've tried to reach out to some of the people
that were investors were going to be buying into some
of these properties that they were going to do, and
(00:59):
they said, no, Moss, no, Moss, put that, put that
on hold, put that on hold. We are not going
to do that doesn't make sense for us.
Speaker 2 (01:11):
Uh. And this is this is across the board. People.
You're now starting to see speak of people.
Speaker 3 (01:19):
In the uh, the realtors out there, and I'll see
a couple of stories as well, talking about how wealthy
buyers are now backing out of you know, multi million
dollar home deals. What's going to happen is it's gonna
it's gonna cause a lot of this stuff a massive slowdown,
massive slowdown to almost to stop in certain industries. Now again,
(01:42):
this will have a bit of a flip to it
in the sense that existing stock is going to.
Speaker 2 (01:47):
Go up in value.
Speaker 3 (01:49):
It's going to go up in value because people aren't
going to go ahead and building anything.
Speaker 2 (01:54):
But this is this is a problem moving forward.
Speaker 3 (02:00):
We've talked about in fact, the high cost of housing
here in the United States, the need for us to
build more homes. You just made the costs of those
homes go up by twenty five percent because of these tariffs.
Speaker 2 (02:16):
It's not going to end well. Not going to end well.
Speaker 3 (02:21):
And this is why these things got to get taken
care of sooner rather than later. Another big real estate
magnet for crying out a looud Barry Sternlicht, talking about
this as well. He thinks that it's going to be
an absolute disaster.
Speaker 2 (02:38):
WI. This is really bad.
Speaker 3 (02:39):
It says, we need Canada's lumber, or we can shop
down our own trees. But it's a bad thing. We
run an equal trade deficit with Canada other than oil,
but we use their oil. If we don't buy it,
they're going to ship it to Asia. For existing owners
of real estate, it's good because to build a new
building will be more expensive, so the existing often stock,
(03:00):
the existing apartment stock.
Speaker 2 (03:02):
Is going to be worth more. But it's bad because
the numbers won't work to create new buildings. You won't
be able to build anything.
Speaker 3 (03:11):
So we already have a four to five million dollar
housing shortage, and you're seeing in the sentiment of the
builders that they're nervous.
Speaker 2 (03:20):
Everyone's nervous. Of course, are.
Speaker 3 (03:24):
Of course are And again you know, for for people
out there that that already cut deals to buy a home,
we're already hearing that the builders coming back and saying,
I can't, I can't build this house for you now,
can't do it.
Speaker 2 (03:39):
My costs went up that much.
Speaker 3 (03:42):
And you're gonna you're gonna see more and more and
more of that across the board.
Speaker 2 (03:45):
Another thing that you're going to see as well is.
Speaker 3 (03:50):
Line line item charges, line item charges, Trump tariff tax
on bills.
Speaker 2 (03:57):
It's kind of this.
Speaker 3 (03:59):
Is not our fault, not our faults this, these tariffs
not a fault, whether they're going to actually put line
items on checks, and it's happening already. Companies are adding
tariffs surcharges to invoices, passing costs to consumers, and highlighting
the impact of tariffs. They're calling it the uh Trump
tariff on the bill. This again, this will slowly but
(04:23):
surely work into the president's approval rating. Needs to act
fast again, needs some of these deals done, and we
need to put this behind us sooner rather than later.
Speaker 2 (04:41):
Watchdog on Wall Street dot com
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