Las Vegas Valley Real Estate Industry Already Feeling Impact of New Tariffs

LAS VEGAS, NV – The impact of the tariffs instituted by upon Mexico, Canada, and China have already been experienced by the real estate industry in the Las Vegas Valley, causing difficulties for some developers who are now encountering elevated building costs.

Nigro Construction – which has operated in Southern Nevada for four decades, focusing mainly on health care, retail and industrial projects – is one such company, with the commercial contractor’s Vice President of Business Development and Project Management, Cory Frank, noting that they are currently paying more for various building supplies than before.

However, Frank said that costs are rising and falling depending on the circumstances of each project, causing a sense of uncertainty in the industry.

In the Las Vegas commercial construction industry, we’re directly feeling the impact of tariffs on steel and aluminum, both of which come from Mexico and Canada,” he said. “While this is a dynamic situation that continues to change, our subcontractors are currently seeing anywhere from 10-15 percent increases in material costs, with some projections reaching 20-25 percent in the next few weeks.”

Two of the United States’ primary trading partners, Canada and Mexico, have had tariffs on various materials and goods as high as 25 percent imposed upon them by the Trump Admin, with China currently having 10 percent tariffs on certain goods.

Two of the industries in the U.S. that are expected to experience the impact of the tariffs the most are automotive and construction, due to the fact that their main supply chains emanate from the nation’s immediate neighbors to the north and south.

However, Frank said that the construction industry is attempting to roll with the punches and adapt to the increasing costs of doing business by working smarter, not harder.

These increases are impacting budgeting and project timelines, but as a contractor, our priority is making financially responsible choices that help our clients save as much as possible while keeping projects on track,” Frank said. “While tariffs are pushing costs higher, we and our subcontractors are doing our best to stay ahead of them by planning purchases in advance and making smart sourcing decisions.”

Experts note that the tariffs may have a greater impact upon multifamily projects in Las Vegas – as opposed to commercial ones – due to the different materials required, potentially resulting in higher price increases and/or cancellation of projects, which could put a strain on a market already dealing with insufficient housing supply.

Shelter Realty Property Management specializes in the areas of  Henderson, Las Vegas and North Las Vegas, NV. Feel free to give us a call at 702.376.7379 so we can answer any questions you may have.