Published by REALTOR.com | April 10, 2025
The luxury housing market could see a major boost, with the wealthy seeking safer investment opportunities amid economic uncertainty.
President Donald Trump’s sweeping new tariffs on imported goods from 60 countries plunged the global stock markets into a state of turmoil, sparking recession fears—but the controversial trade policy could up end up being an unexpected boon for the luxury real estate market.
Not surprisingly, stock market performance has an outsized impact on high-end-home buyers, who are more likely to invest in stocks than their less wealthy counterparts.
As of April 6, the S&P 500 had tumbled by 15% since Trump’s inauguration in late January, according to CNN, amid a growing economic uncertainty. In the wake of his tariff rollout on April 2, which the president touted as “Liberation Day,” stock markets around the world suffered an estimated loss of about $10 trillion in market value.
Days of up-and-down trading followed, as China retaliated against the U.S. with 84% tariffs. On April 9, the European Union approved new levies of its own on $23 billion in U.S.-made products, according to Reuters.
Trump then responded by pausing all the new tariffs for 90 days, with the exception of China, on whom he increased the tariffs to 125%.
However, a potential silver lining to this frenzied market volatility is that it could prompt jittery investors to spurn stocks in favor of pricey real estate, “as they seek the reliability of a tangible asset,” Realtor.com® Chief Economist Danielle Hale predicts 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.”
Should Trump make another U-turn and fully implement the tariffs as announced, according to Hale, that could undermine economic growth, diminishing incomes and investment returns, and shrinking homebuyers’ purchasing power.
The good news for these deep-pocketed house hunters is that the high-end real estate market has plenty of room to grow.
