As 2025 unfolds, questions around tariffs and their effect on the housing market remain top of mind—especially in states like Ohio that are deeply tied to both manufacturing and real estate. With Donald Trump’s trade-first policies potentially returning to center stage, Ohioans are asking: How will tariffs impact the real estate market in our state?
The short answer: while there are short-term cost pressures, the long-term impact of tariffs on housing, particularly in Ohio, may turn out to be a net positive—thanks to domestic job creation, improved supply chain resilience, and renewed investment in American industry.
This article explores the Ohio real estate market in 2025, with data-backed insights and expert analysis that reflect the reality on the ground.
What Are Tariffs, and Why Do They Matter?
Tariffs are taxes imposed on imported goods, often used to protect domestic industries. Under President Trump, tariffs targeted steel, aluminum, and lumber—core materials in construction and infrastructure.
Critics warned these tariffs would raise construction costs and hamper affordability. But while prices initially spiked, many sectors have since stabilized, and some builders have shifted to U.S.-based suppliers to avoid unpredictable international costs.
📊 According to the National Association of Home Builders (NAHB), lumber prices increased 250% during the height of the pandemic due to both demand and trade constraints—but prices fell by over 60% in 2022 as supply chains rebalanced and domestic mills ramped up production.
Ohio’s Economic Landscape: A Perfect Case Study
Ohio is a manufacturing powerhouse. The U.S. Census Bureau reports that nearly 12% of Ohio’s workforce is in manufacturing, compared to just 8.3% nationwide. With major employers in steel, automotive, and heavy equipment, Trump’s America First trade policies—especially tariffs—directly benefit the state.
More manufacturing jobs mean higher wages and more housing affordability in Ohio. As job security grows, so does demand for housing, creating a solid base for long-term real estate appreciation.
🏗️ Case in point: In 2023, Intel broke ground on a $20 billion semiconductor plant in Licking County—expected to create 3,000 permanent jobs. This investment, encouraged in part by trade and reshoring policy momentum, is already boosting surrounding property values.
Do Tariffs Raise Home Prices?
It’s true that some tariffs—especially on lumber and steel—initially drove up building costs. But as the market adapts and domestic production ramps up, those costs are starting to stabilize.
✅ Federal Reserve Economic Data (FRED) shows that the Producer Price Index (PPI) for construction materials has declined since mid-2022, suggesting that the inflationary pressure tied to tariffs is easing.
Moreover, when builders use locally sourced materials, they often face fewer delays and better predictability in cost—leading to more efficient construction timelines, especially in suburban and rural areas where demand is high.
Real Estate Investment in Ohio: Still a Smart Move
Despite national market turbulence, the real estate trends in Ohio remain strong. According to Redfin, home prices in cities like Dayton and Youngstown rose by 5–8% in 2024. Inventory remains low, and rental demand continues to surge in metro markets like Columbus and Cincinnati.
For investors, this means:
- Sustained appreciation fueled by job growth
- Low housing inventory, creating urgency for buyers
- Tariff-protected sectors, helping stabilize the regional economy
While the trade war real estate impact was initially viewed with concern, Ohio’s response has proven resilient.
Trust in Local Strength: Steel and Construction in Focus
Ohio’s steel mills—once struggling under foreign competition—have gained ground under tariff protections. Cleveland-Cliffs Inc., which operates several major mills in Ohio, saw profits surge after the imposition of tariffs on Chinese and Turkish steel.
This resurgence is vital for the steel tariffs and housing market relationship. More domestic steel production means more predictable costs for commercial and residential development alike.
Expert Insight: What Economists Are Saying
💬 Dr. Ned Hill, an economist at The Ohio State University, noted in a 2023 interview with Smart Business:
“Trade policy that strengthens domestic industry adds resilience to the economy. While prices may rise initially, long-term economic growth and job creation offer broader benefits.”
That’s exactly what we’re seeing in Ohio: a short-term adjustment followed by longer-term stability and opportunity.
The Bottom Line: A Strong Outlook for the Ohio Real Estate Market
So, how will tariffs affect the real estate market in Ohio? Despite what critics claim, the answer appears optimistic. With increasing domestic production, strengthening employment, and a robust housing demand, tariffs have the potential to reinforce the local economy rather than damage it.
✅ Key Takeaway: For those considering real estate investment in Ohio, now is an opportune time. The market is propped up by macroeconomic policies that prioritize American industry and workforce development.
About the Author
Mike Wall is a seasoned real estate investor and broker based in Dayton, Ohio. With 23 years of experience, Mike has sold over 1,700 homes, flipped 100+ properties, and currently owns 36 rental units throughout the state. He is the founder of EZ Sell Homebuyers and a trusted voice in Ohio real estate.
References
- U.S. Census Bureau: Manufacturing Employment by State
- Federal Reserve Economic Data (FRED): Producer Price Index
- NAHB: Lumber Price Trends
- Redfin: Ohio Housing Market Data
- Smart Business: Ned Hill on Trade Policy
- Cleveland-Cliffs Investor Reports: clevelandcliffs.com
Final Word
While national headlines may focus on volatility and global trade tensions, the property market in Ohio and tariffs tell a more balanced story. Trump’s tariffs helped fortify key industries across the state, laying a strong foundation for real estate growth in 2025 and beyond.
Ohio is not just weathering the storm—it’s positioned to thrive.
❓ Frequently Asked Questions (FAQ)
1. What are tariffs and how do they impact real estate?
Tariffs are taxes imposed on imported goods. In real estate, they affect construction by increasing the cost of materials like steel, aluminum, and lumber. This can influence homebuilding costs, timelines, and overall affordability in the short term. However, in the long term, tariffs can support domestic industries, create jobs, and stabilize housing demand.
2. How have tariffs affected the Ohio housing market specifically?
In Ohio, tariffs have indirectly benefited the housing market by boosting local manufacturing and job growth. Cities like Columbus, Dayton, and Cleveland have seen rising home values due to increased employment and infrastructure investment—offsetting short-term material cost increases.
3. Do tariffs make homes more expensive in Ohio?
Initially, tariffs did cause price increases on construction materials, which affected some new builds. However, many Ohio builders adapted by sourcing materials locally or negotiating better terms with suppliers. Today, prices are more stable, and efficiency has improved, helping keep housing costs manageable.
4. Have Ohio’s steel and manufacturing industries benefited from tariffs?
Yes. Ohio’s steel producers—such as Cleveland-Cliffs Inc.—saw significant gains after Trump’s steel tariffs took effect. More local production has led to job creation and increased consumer confidence, both of which positively affect real estate markets.
5. Is now a good time to invest in Ohio real estate?
Yes. The Ohio housing market is currently experiencing low inventory, strong demand, and steady price appreciation. With domestic industries recovering and employment rising, the market remains attractive for both residential buyers and real estate investors.
6. What cities in Ohio are showing the most real estate growth in 2025?
According to Redfin and local market data, cities like Columbus, Cincinnati, Dayton, and Toledo are seeing consistent home price growth in 2025. These areas benefit from strong job markets, affordable housing, and increased infrastructure investment.
7. What expert opinions support the long-term benefits of tariffs?
Economists like Dr. Ned Hill from The Ohio State University have stated that trade policies which support domestic industries create economic resilience. While prices may rise temporarily, the long-term effects—like job creation and industrial investment—often support stronger housing markets.
8. Are tariffs still in effect in 2025?
Some tariffs imposed during President Trump’s administration remain in place, while others are under review or adjustment depending on current U.S. trade policy. However, their long-term impact—especially in Ohio—continues to shape the housing and manufacturing sectors positively.
9. What are the biggest risks tied to tariffs and real estate?
The primary risks include short-term cost volatility, uncertainty in global supply chains, and potential retaliatory tariffs. However, in Ohio’s case, local adaptation and domestic sourcing have helped minimize these risks, especially for builders and developers.
10. Where can I find reliable data on the Ohio real estate market and tariff impact?
You can refer to:
- Redfin for current housing market stats
- Federal Reserve Economic Data (FRED) for material cost trends
- U.S. Census Bureau for manufacturing employment data
- National Association of Home Builders (NAHB) for construction insights
- Local economic development agencies for city-specific forecasts