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How Tariffs Impact the Home Building Industry

  • Writer: Adele Okolie
    Adele Okolie
  • Feb 13
  • 2 min read



Scarcity and an acute, sustained rise in building material costs are driving up the cost to construct homes. There are several factors driving this trend, notably inflationary pressures and global factors, including trade uncertainty.




NAHB estimates that $184 billion worth of goods were used in the construction of both new multifamily and single-family housing in 2023. $13 billion of those goods were imported from outside the U.S., meaning approximately 7% of all goods used in new residential construction originate from a foreign nation. Back in 2018, the NAHB estimated that the tariffs added nearly $9,000 to the cost of constructing a single-family home.


Import Tariffs on Building Materials |

A tariff is essentially a tax on an imported good. This effect raises the price of imported products, where the price increase is then typically absorbed by the importer or passed on to the end consumer of the good, usually in some combination.


Wood |

Of $8.5 billion worth of sawmill and wood products imported in 2023, nearly 70% of these imports came from Canada. Many of these imports are already subject to a 14.5% antidumping and countervailing duties tariff.


Gypsum & Lime |

The U.S. imported $456 million worth of lime and gypsum products in 2023, with 71% of these products originating from Mexico.


Raw Materials |

Numerous raw materials and components, ranging from steel and aluminum to home appliances, are sourced from China and are already subject to existing 301 and 232 tariffs.


Steel |

The construction industry accounts for 43% of all steel shipments prior to the imposition of tariffs; however, steel accounts for only a portion of a project’s costs. Steel is used in the construction of several different building components including reinforcing steel in structural concrete, structural steel framing, and miscellaneous metal framing and supports.



Want to learn about how tariffs will effect your project?


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