Multifamily Dive
Jun 4, 2025
Facing renewed tariff challenges, apartment developers are proactively adjusting procurement strategies to mitigate potential cost increases.
As new tariffs loom, apartment developers are revisiting strategies from previous trade disputes to navigate potential cost escalations. Multifamily Dive reports that industry leaders, including BLDG Ventures' CEO Rene Bello, are taking proactive measures such as bulk purchasing materials well in advance and sourcing from alternative suppliers to circumvent anticipated price hikes. Bello, for instance, secured 75,000 square feet of flooring ahead of time and engaged directly with international manufacturers to ensure supply chain stability.
Similarly, other developers are collaborating closely with contractors to share tariff-related risks and exploring domestic alternatives to imported fixtures. While some, like Camden Property Trust, anticipate a modest 2% to 3% increase in construction costs, the overarching sentiment underscores a cautious yet prepared approach to the evolving trade landscape.