What Trump's Tariffs Could Mean For Homebuilding—and the Housing Crisis
After President Trump announced his tariffs plan on April 2, what he has deemed "Liberation Day," only to follow up with a 90-day pause on the previously-announced reciprocal tariffs (with exception to a 10 percent flat duty on all imported goods), the public is rightfully flummoxed about precisely what products are about to get more expensive. Homebuilders fall into this shaky boat: According to the National Association of Homebuilders (NAHB), nearly $14 billion of imported goods were used to construct new single and multifamily residences across the country—accounting for seven percent of all required materials. Though there's still much uncertainty about how tariffs will resume after the pause, reports nationwide have homebuilders of all sizes bracing for what could be a big setback to creating new homes and renovating others.
When it comes to homebuilding, the industry isn't a stranger to pricing changes to materials like softwood and steel, which were tariffed by Trump in his first term (and mostly maintained under the Biden administration). However, the U.S. Department of Commerce has stated that it plans to raise these tariffs again this year to more than 34 percent, which, says the Financial Times, includes new import and anti-dumping duties. It's unknown when this plan will go into effect. And while Canada is also a major exporter of steel and aluminum, according to U.S. News & World Report, many of the materials used in U.S. housing construction come from China, currently subject to a whopping 145 percent tariff (which includes a 120 percent reciprocal tariff exempted from his April 9 pauses). This could cause material costs to soar to as much as $45 billion per year from today's $4 billion expenditure.
Other materials, including gypsum for drywall, flooring, appliances, and HVAC systems are frequently made in and imported from Canada, China, and Mexico; in early April, the New York Times published example "line items" that account for both tariff costs and possible labor shortages resulting from large-scale migrant worker deportations. In their analysis, the costs for windows and doors would increase by 11 percent, roofing would increase by 21 percent, and drywall would increase by 22 percent—not including any cost increases to labor. U.S. News notes that suppliers and contractors may be able to source materials more cheaply by shopping from manufacturers in countries currently exempted from reciprocal tariffs, but "most homebuilders have developed relationships with companies and countries and can't always make immediate changes."
Yet immediate changes are coming from the top—policy shifts at the national level cause prices to fluctuate, which, as a story by the Pittsburgh Gazette explains, has strained some smaller suppliers and contractors. One Pennsylvania supplier who typically receives prices annually has begun to see them change almost daily; some manufacturers have paused pricing entirely, which can delay projects. This could mean that projects currently underway could see price hikes or pauses while manufacturers catch up or developers strategize how to recoup potential unanticipated costs.
For smaller remodeling projects, the NAHB reports that their 2025 first quarter Remodeling Market Index—a survey that asks builders to rate the remodeling market—dropped to its lowest level since 2020, "as some remodelers are reporting that uncertainty about tariffs and the direction of the economy are making customers hesitant to spend on larger projects," says Nicole Goolsby, the remodelers chair for NAHB. Even larger homebuilders like Lennar were feeling "squeezed" as early as March and, according to Realtor.com, their market share dropped by four percent due to interest rates and a downturn in consumer confidence in the wake of international trade uncertainty.
This means consumers could see higher prices for new construction homes as well as for renovations to existing ones. Realtor.com notes that new homes account for less than 20 percent of the housing market, but that there are some states where construction is booming to meet demand: In Idaho, new construction makes up nearly 40 percent of the market, and in North Carolina and Delaware, new homes hover around 30 percent of the housing market. In these states, momentum toward meeting our current housing needs could be hit hard as the NAHB reports that a rise in material costs could raise new home construction costs by more than $9,000. As import duties are levied on individual materials themselves, the costs could be passed onto buyers, raising more questions about how trade policy will ultimately impact the housing crisis.
Top photo by.
Related reading:
How Will the Next President Fix the Housing Crisis?
The Good and Bad News for Housing in 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
UPI
7 minutes ago
- UPI
White House seeks Christmas volunteers, performers
Aug. 4 (UPI) -- Have you ever wanted to participate in the White House's annual Christmas celebrations? Here's your chance to volunteer to help decorate or to perform during open houses. "Americans from every U.S. state and territory are invited to apply for the opportunity to assist with decorating at the White House or showcase their talents as a performer at the holiday open houses," a press release said. Applications are open starting Monday and will close at 5 p.m. Sept. 5. Selected applicants will be notified by 5 p.m. Oct. 13. All volunteers must pay for their own travel, accommodations and expenses. They must be 18 or over and available to work Nov. 24-30. Performers and musical groups will perform during open houses in December. Acts including school bands, choirs, and holiday-themed entertainers are encouraged to apply, the White House said. First ladies have worked on the holiday celebrations through the years, showcasing their own visions of holiday decor. First Lady Dr. Jill Biden hosted National Guard members and their families for her holiday decor unveilings. "One of the privileges I have as first lady is deciding who will be the first to experience the magic of the season here at the White House. And every year, I've asked to share it with the National Guard families," Biden said during the unveiling in 2024. First Lady Melania Trump's first Christmas season, honored "Time-Honored Traditions." "The president, Barron, and I are very excited for our first Christmas in the White House," the first lady said in a statement. "As with many families across the country, holiday traditions are very important to us. I hope when visiting the People's House this year, visitors will get a sense of being home for the holidays." After eight years in the White House, First Lady Michelle Obama was emotional at her last holiday unveiling. "Thank you to all of the volunteers who traveled here from 33 states, D.C., and Puerto Rico, to come here and put up these beautiful decorations and transform this White House into this holiday wonderland" Obama said in her opening remarks. "As we celebrate my family's last holiday season in the White House, I'm thinking back to when we first came here to Washington -- and we promised to open up this house to as many people from as many backgrounds as possible." First Lady Laura Bush announced her holiday decor soon after the attacks of Sept. 11, 2001. "I am disappointed there are not tours this season. We had to err on the side of caution and safety. All of us are going to deal with this Christmas with a balance of tradition and the reality of what happened on Sept. 11," Bush said standing beside an ornately decorated 18-foot Concolor fir in the Blue Room. "Because this year's holiday season follows a national tragedy, both home and family have special meaning to all Americans," she said.
Newsweek
7 minutes ago
- Newsweek
Largest Texas Newspaper Rebukes Greg Abbott Over Redistricting 'Power Grab'
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Houston Chronicle, Texas' largest newspaper, is criticizing Governor Greg Abbott in an opinion piece for what it calls his "Republican power grab" regarding his state legislature's push to vote and approve GOP-backed redistricting maps that could have drastic effects on and in the aftermath of the 2026 midterm election. Newsweek has reached out to Abbott's office via email for comment on Monday. Why It Matters Abbott had called a special session to address the flooding that killed 135 people last month in Texas Hill Country and the redistricting plan. Tensions have escalated between the governor, Republicans and Texas Democrats as 51 Democratic lawmakers in the Legislature fled the state to Illinois on Sunday to prevent Republicans from moving forward with a vote due to lacking a quorum. Two-thirds of members within the 150-member chamber must be present to pass legislation. In a letter, Abbott referred to the fleeing members as "derelict Democrats" and threatened to remove them from the Legislature altogether if they didn't return by 3 p.m. Monday, August 4. "Real Texans do not run from a fight. But that's exactly what most of the Texas House Democrats just than doing their job and voting on urgent legislation affecting the lives of all Texans, they have fled Texas to deprive the House of the quorum necessary to meet and conduct business," he wrote in part. Republicans have a slim majority in the U.S. House of Representatives and a slightly larger one in the U.S. Senate. Democrats hope to take back the House in next year's midterms, which traditionally have seen the party that is not in power in the White House gain a number of seats. During President Donald Trump's first term, Democrats picked up 41 seats in the midterms. Trump, meanwhile, has backed Abbott's move to redraw the state map. What To Know The Chronicle's editorial board published an op-ed piece on Monday, comparing Abbott's efforts during the recent deadly Texas floods to his political efforts to swiftly redraw and enact new districts across the Lone Star State. "The governor has followed his orders from Washington and put a Republican power grab before communities devastated by Central Texas floods," the editorial reads. "With a stroke of his pen, Abbott could have moved hundreds of millions of dollars by executive fiat. He could have called a session with the sole objective of addressing the still-unfolding crisis in the Hill Country." The editorial board continued: "But the lives of Texans come second to the desires of President Trump and his loyalists. When Trump utters the words 'very simple redrawing,' Abbott asks, how many seats do you want? And we end up with a Congressional map that puts Democrats on the endangered species list." Democrats have argued that if Republicans succeed in redrawing districts in Texas, Trump will push other states to do the same. The editorial also notes that both political parties, be it Republicans in Texas or Democrats in Illinois, have engaged in gerrymandering while in power to boost future prospects. The difference now, according to the Chronicle, is that Texas' bluest cities are being carved up and would hypothetically lead to a Republican majority on par with the nation's reddest state, Wyoming. Texas Democrats would safely hold about 21 percent of the state's congressional districts even though 46 percent of voters in last year's presidential election voted for Democratic nominee then-Vice President Kamala Harris. Abbott is also chastised for his threats of removal, with the editorial calling such an outcome "an attack on democracy itself." "None of this was necessary," the editorial concludes. "Abbott could've just made the special session all about flooding. Heck, lawmakers probably could've gotten a recovery package passed with plenty of time left over to sift through Lieutenant. Governor Dan Patrick's buffet of red-meat priorities. Instead, the well-being of Texans has once again come second to flagrant backroom partisan power-plays." George Strait, Greg Abbott, and Tom Cusick speak onstage for George Strait and Vaqueros del Mar's "Strait To The Heart": A benefit for Hill Country Flood Victims at Estancia at Thunder Valley on July 27... George Strait, Greg Abbott, and Tom Cusick speak onstage for George Strait and Vaqueros del Mar's "Strait To The Heart": A benefit for Hill Country Flood Victims at Estancia at Thunder Valley on July 27 in Boerne, Texas. More What People Are Saying Sergio Sanchez, a former Republican chairman and longtime radio host in Texas, told Newsweek: "This Texas GOP strategy is based on political reality. Almost the entire southern Texas border has shifted red. Red represents the traditional values, work ethic, economic opportunities, immigration controls and police protections no longer espoused by modern Democrats." He added: "The Democrats are again showing they have no values and solutions for Texas and the nation. Their cowardly response is laughable and sad. Democrats are clueless and lost." Former Democratic Texas Representative Colin Allred, also a past U.S. Senate candidate against Senator Ted Cruz, in a statement on Sunday: "This fight isn't just about maps—it's about power. When Republicans silence Black and Latino voters, they're not just rigging elections. They're rigging who gets health care, clean water, and a fair shot. "Let's be clear: they don't just want to rig the vote. They want to use that power to rig the economy — to keep helping the wealthy and well-connected while working families get left behind. Texas Attorney General Ken Paxton on X on Sunday: "I support the immediate arrest of these rogue lawmakers who've fled their duties. These radical Democrats are spitting in the face of every Texan they swore to represent. This is cowardice and dereliction of duty, and they should face the full force of the law without apology." Texas state Representative Gene Wu, the Texas House Democratic Caucus leader, said during a press conference in Chicago: "We will do whatever it takes. What that looks like, we don't know." What Happens Next? Republican State House Speaker Dustin Burrows said the chamber would still meet as planned at 3 p.m. on Monday. "If a quorum is not present then, to borrow the recent talking points from some of my Democrat colleagues, all options will be on the table...." he wrote on X. The lack of a quorum would also delay votes on flood relief and new warning systems in the wake of last month's catastrophic floods in Texas.
Los Angeles Times
8 minutes ago
- Los Angeles Times
State Department may require visa applicants to post bond of up to $15,000 to enter the U.S.
WASHINGTON — The State Department is proposing requiring applicants for business and tourist visas to post a bond of up to $15,000 to enter the United States, a move that may make the process unaffordable for many. In a notice to be published in the Federal Register on Tuesday, the department said it would start a 12-month pilot program under which people from countries deemed to have high overstay rates and deficient internal document security controls could be required to post bonds of $5,000, $10,000 or $15,000 when they apply for a visa. The proposal comes as the Trump administration is tightening requirements for visa applicants. Last week, the State Department announced that many visa renewal applicants would have to submit to an additional in-person interview, something that was not required in the past. In addition, the department is proposing that applicants for the Visa Diversity Lottery program have valid passports from their country of citizenship. A preview of the bond notice, which was posted on the Federal Register website on Monday, said the pilot program would take effect within 15 days of its formal publication and is necessary to ensure that the U.S. government is not financially liable if a visitor does not comply with the terms of his or her visa. 'Aliens applying for visas as temporary visitors for business or pleasure and who are nationals of countries identified by the department as having high visa overstay rates, where screening and vetting information is deemed deficient, or offering citizenship by investment, if the alien obtained citizenship with no residency requirement, may be subject to the pilot program,' the notice said. The countries affected will be listed once the program takes effect, it said. The bond would not apply to citizens of countries enrolled in the Visa Waiver Program and could be waived for others depending on an applicant's individual circumstances. Visa bonds have been proposed in the past but have not been implemented. The State Department has traditionally discouraged the requirement because of the cumbersome process of posting and discharging a bond and because of a possible misperceptions by the public. However, the department said that previous view 'is not supported by any recent examples or evidence, as visa bonds have not generally been required in any recent period.' Lee writes for the Associated Press.
