How Tariffs Impact the Home Building Industry

By Alex Strong of The National Association of Home Builders. Excerpts:

"Scarcity and an acute, sustained rise in building material costs — from softwood lumber to distribution transformers — are driving up the cost to construct homes and harming housing affordability. There are several factors driving this trend, notably inflationary pressures and global factors, including trade uncertainty.

NAHB estimates that $204 billion worth of goods were used in the construction of both new multifamily and single-family housing in 2024. $14 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."

"Data from the NAHB/Wells Fargo Housing Market Index (HMI) April 2025 survey reveals that builders estimate a typical cost effect from recent tariff actions at $10,900 per home."