|
How Trump’s Tariffs Could Impact the Luxury
Real Estate Market
President Donald Trump's sweeping new tariffs on goods from 60 countries have shaken global markets, ignited fears of a recession, and created widespread uncertainty. But in a surprising twist, this controversial policy may actually give a boost to the luxury real estate market.
Luxury homebuyers are typically more exposed to fluctuations in the stock market—and recent events have hit portfolios hard. As of April 6, the S&P 500 had fallen by 15% since Trump’s inauguration, according to CNN, following a volatile stretch of trading. The April 2 tariff rollout, which Trump celebrated as “Liberation Day,” led to a staggering $10 trillion in estimated global market losses.
Adding fuel to the fire, China hit back with 84% tariffs, and on April 9, the European Union followed with new levies on $23 billion in U.S. goods, Reuters reported. In response, Trump paused most of the new tariffs for 90 days—except for China, whose tariffs he increased to 125%.
While this kind of economic upheaval generally sends investors into safer havens like bonds, some are eyeing luxury real estate as an alternative. As Realtor.com® Chief Economist Danielle Hale explains in her 2025 Luxury Housing Market Outlook:
“In an economic environment riddled with uncertainty, investors are seeking out safe havens. For many, this is found in bonds, but real estate may be an alternative for some,” says Hale. “While real estate can lose value, it is a tangible asset that not only provides shelter, it tends to have more stable pricing than stocks.”
Still, Hale warns that if the full tariff plan is reinstated, it could bring broader economic headwinds:
“Should Trump make another U-turn and fully implement the tariffs as announced, that could undermine economic growth, diminishing incomes and investment returns, and shrinking homebuyers' purchasing power,” she says.
“For now, it looks like a reprieve has been issued for many countries, but as we've seen very clearly in the last few weeks, the situation can change, so it's wise for high-end-home buyers to stay abreast of the news.”
Real Estate Still Has Room to Grow
Despite recent market turmoil, there’s reason for optimism when it comes to luxury property. According to Realtor.com, total U.S. household real estate hit $48.1 trillion by the end of 2024—a 7% increase from the year before, and the second-highest level ever recorded. Notably, the wealthiest households saw the greatest gains.
Yet real estate only made up 18.7% of the total assets held by the top 10% of U.S. households—down from just under 20% two years ago. In contrast, stocks and mutual funds now comprise more than one-third of their portfolios, the highest proportion on record. That imbalance signals room for real estate to take on a larger role.
“The combination of significant stock market wealth and relatively low debt in real estate among the wealthiest 10% suggests that this cohort has more capacity for real estate investment,” says Hale.
Of course, property ownership isn’t without its costs. The Realtor.com economist warns that real estate has its own set of issues, namely, property taxes and insurance costs, as well as maintenance and upkeep.
“Still, real estate can be a place to park money, and when the world feels uncertain, we often see an interest in home and real estate purchases,” Hale adds.
What This Means for Southern California
In Southern California, where the luxury market plays a major role, this flight to real estate could boost activity in areas like Manhattan Beach, Beverly Hills, and Newport Beach. As affluent buyers move to diversify their portfolios and find more stable investments, demand for high-end homes may increase—along with competition for top-tier properties.
If you're thinking about buying or selling in the luxury market, now’s a good time to talk strategy. In a market this dynamic, having the right guidance can make all the difference.
|
|
|
Buy Before You Sell
Move into your new home now - and sell your current home with peace of mind.
Many homeowners need to tap into the equity of their current home to purchase their next home. With our Buy Before You Sell program, you can do just that — and have the best possible outcome on your transaction.
Ask me how.
|
|
|
1811 Tevis Ave.
Long Beach 90815
5 Bed | 2 Bath | 2018 SF | $1,395,000
Stunning Remodeled 5-Bedroom Home in Highly Desirable Los Altos! This beautifully remodeled home is nestled on a picturesque tree-lined street in one of Los Altos’ most sought-after neighborhoods. Designed for modern living and entertaining, the open floor plan features hardwood floors, beamed ceilings, and custom paint throughout. The gourmet kitchen boasts sleek white cabinetry, black quartz countertops, a spacious island, and high-end GE Profile stainless steel appliances. Enjoy seamless indoor-outdoor living with a stunning wall of glass-pane doors that open to an entertainer’s patio and a beautifully landscaped backyard. Recent upgrades include a new roof and driveway in 2024, solar system with dual batteries in 2024, and new windows in 2023. Conveniently located near shopping, parks, Trader Joe’s, Cal State Long Beach, and award-winning Minnie Gant Elementary School—this home truly has it all!
OPEN HOUSES
Saturday (4/12) 12:00 - 4:00 pm &
Sunday (4/13) 1:00 - 4:00pm
|
|
|
1535 E Ocean Blvd #3
Long Beach, CA 90802
2 Bed | 1.5 Bath | 943 SF | $599,900
Beautiful Top-Floor Corner Condo with Peek-a-Boo Ocean View!
Enjoy beachside living in this beautiful 2-bedroom, 1.5-bath condo offering views of Ocean Blvd from its prime top-floor corner location. Just steps from the sand with easy beach access, this home features a spacious living room with gorgeous wood floors and recessed lighting, while the updated kitchen offers granite countertops, white cabinetry, and stainless steel appliances. Located right across the street from the beach with beach access. Rare private garage with remote. Conveniently located close to all of the great restaurants, cafes, and entertainment in downtown Long Beach and Belmont Shore. Don’t miss this chance to live just moments from the beach, bike paths, and ocean breezes!
Eligible for a $20,000 down payment grant from City National Bank!
OPEN HOUSES
Saturday (4/12) & Sunday (4/13)
12:00 - 3:00pm
|
|
|
3603 E Hungerford St.
Long Beach, CA 90805
2 Bed + Bonus Room | 1 Bath | 1064 SF | $799,900
Charming 2-Bedroom + Bonus Room Home in a Quiet Long Beach Neighborhood. This beautifully updated home features fresh exterior paint, a new roof, and central AC. The light-filled living room boasts wood floors, recessed lighting, and an inviting atmosphere, while the updated kitchen includes granite counters, stainless steel appliances, and modern cabinetry. A spacious bonus room with a stone fireplace offers versatility as a family room or 3rd bedroom. The expansive backyard with a patio is perfect for entertaining or adding an ADU, and the long driveway with a finished 1-car garage provides plenty of parking. Located near Lakewood Mall and local amenities, this home is a must-see!
Eligible for a $50,000 down payment grant from City National Bank!
|
|
|
225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $299,900
Top-floor end unit condo in the heart of Long Beach, offering privacy and city views! This nicely updated home features an open living area with a private balcony, a stylish kitchen with butcher block countertops, and a bright bedroom with two mirrored closets. Located near top attractions like the Long Beach Convention Center and Shoreline Village, with easy access to dining, shopping, and transportation.
|
|
|
223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $799,900
Enjoy modern luxury living in this stunning 2019-built townhome at The Huxton in the East Village Arts District. This inviting home features an open-concept layout perfect for entertaining, with high ceilings, large windows, recessed lighting, and beautiful flooring throughout. The gourmet kitchen boasts quartz countertops, soft close cabinets, and upscale appliances by Bertazzoni and Bosch. Upstairs, two primary suites offer walk-in closets and luxurious bathrooms. Enjoy city views from the spacious rooftop deck – ideal for relaxing or BBQs. Eco-friendly features include owner-owned solar panels and a garage pre-planned for EV charging. Located in a secure, gated complex, you’ll be steps from the waterfront, dining, cafes, and nightlife. VA Approved.
Eligible for a $50,000 down payment grant from City National Bank!
|
|
|
3817 W Compton Ave.
Orange, CA 92868
4 Bed | 2 Bath | 1316 SF | $985,000
Beautiful Single-Story Pool Home with Modern Upgrades in Orange, CA! Discover this stunning 4-bedroom, 2-bathroom home situated on a spacious 7,598 sq. ft. lot in a fantastic Orange neighborhood. This thoughtfully updated home offers everything you need for comfortable living and entertaining. Located in a friendly neighborhood, this home offers unbeatable access to major freeways (I-5 and 22), top destinations like UCI Medical Center, Angels Stadium, Disneyland, Old Towne Orange, The Outlets at Orange, Chapman University, Honda Center, and GardenWalk. This is the perfect opportunity to live in a vibrant area while enjoying a tranquil and well-appointed home.
|
|
|
488 E. Ocean Blvd #1102
Long Beach, CA 90802
1 Bed | 1 Bath | 600 SF | $545,000
Stunning 11th-Floor Ocean View Condo in the Iconic Aqua Towers! Enjoy breathtaking ocean, marina, and city views in this stunning corner-unit high-rise. Featuring floor-to-ceiling windows, high ceilings, slate flooring, granite countertops, and a wrap-around balcony, this condo offers the ultimate in coastal living. A rare private enclosed garage near the elevator adds extra convenience. Resort-style amenities include 24-hour security, pool, spa, sauna, fitness center, and clubhouse. Just steps from the beach, shopping, dining, and entertainment—don’t miss this incredible opportunity!
|
|
|
3824 Pacific Ave.
Long Beach 90807
4 Bed | 3.5 Bath | 2646 SF | $1,710,000
This stunning, custom-built single story Mediterranean style pool home was completely rebuilt in 2007 and features 4 bedrooms and 3 1/2 baths. Set amidst towering palms on one of the city's most prestigious avenues. A Saltillo-tiled walk leads to custom-made iron doors entering into the grand reception foyer beneath soaring cathedral ceilings. Exquisite 3/4 solid oak hardwood flooring flows throughout. The awe-inspiring great room boasts a 12' high cathedral ceiling, crown moldings and a gas fireplace. Custom designed gourmet kitchen features classic cherry wood cabinetry, granite counters, walk-in pantry, 5 burner gas cooktop, Stainless dual ovens, Built-in ref/freezer, dishwasher, a large island with seating for 4 and a separate dining area. Outside the kitchen is a fabulous raised lighted deck leading to the newly built pool area. A unique roofed but open-air lounge perfect for indoor/outdoor living and entertaining. There is also a full pool bath located next to the open family room and pool.
|
|
|
700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $840,000
Experience luxury coastal living with breathtaking ocean views from every room in this beautifully remodeled high-rise condo at the iconic International Tower. This light-filled unit features an open floor plan, updated kitchen with sleek cabinets, marble countertops, and stainless steel appliances, and a spacious primary suite with a luxurious soaking tub. Enjoy panoramic vistas from the large wrap-around balcony, plus access to top-notch amenities, including a pool, fitness center, and 24-hour security, all just steps from the beach and vibrant local dining.
|
|
|
|
