Impact of Global Economic Policies on Local Real Estate
Impact of Global Economic Policies on Local Real Estate
Charleston’s real estate market doesn’t operate in a vacuum. National and global economic policies, including tariffs, labor regulations, and interest rate shifts, directly impact property values and construction costs. Here’s how 2025’s economic climate is influencing Charleston’s real estate sector.
Rising Construction Costs
Tariffs on Materials: New U.S. trade policies have raised tariffs on Canadian lumber to nearly 40%, adding approximately $7,500–$10,000 to the cost of constructing an average new home (NAHB).
Labor Shortages: Stricter immigration policies are reducing the availability of skilled labor in the construction sector, potentially delaying projects and increasing costs.
Interest Rates and Mortgage Trends
Mortgage Rate Stabilization: Interest rates for 30-year fixed mortgages are currently hovering around 6.63% as of March 2025, impacting affordability for buyers (FRED).
Loan Accessibility: Higher interest rates could slow investment in new developments, particularly for commercial real estate projects.
Effects on Charleston’s Market
Rising Home Prices: Due to increasing construction costs, new home prices may rise faster than resale properties, making existing homes more attractive to buyers.
Luxury Market Resilience: Despite rate hikes, Charleston’s luxury market remains insulated due to high cash-buyer activity and continued out-of-state interest.
Staying informed on global economic trends is key for buyers and investors navigating Charleston’s evolving market landscape. Reach out to our team today!
