US tariffs will increase prices for investment property owners. By the time you read this article, tariff amounts may have changed, but the overall concept remains the same - US tariffs on Canada, Mexico, and China will increase prices on durable goods for rental property owners.
The Kellogg Agency has already seen increases in HVAC systems and water heaters due to anticipated tariffs. Tariffs will affect everything from aluminum and steel to insulated wiring. Some vendors can stockpile parts, but most cannot keep a large inventory of complete systems on hand.
It is difficult to say how much prices will be affected because of the current US administration’s fluctuating tariff policy. However, the uncertainty is also causing price increases. While estimates vary, owners should expect prices for HVAC, water heaters, appliances, and repairs to go up by about 3% above 2024 prices.
Kellogg Agency remains committed to finding licensed and insured vendors with the best service and prices for our owners.
Will rental prices keep up with increased maintenance costs? The demand for rentals will remain high if new construction slows. But layoffs and the cost of living will affect how much tenants can pay. Unfortunately, we don’t know how US tariffs will affect rental prices.
The statements in this article are the opinions of the Kellogg Agency. This article is not intended to provide investment advice. Consult your tax and investment advisors for assistance with your portfolio.
By JENNIFER KELLOGG - Wednesday, March 12, 2025