NAHB Members Cite Impact of Tariff Uncertainty on Home Building

Tariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. NAHB members have been sharing the impact that these tariffs are having with media outlets across the United States.

Lumber remains a primary concern, with countervailing and antidumping duties expected to more than double this fall. Steve Martinez, president of Tradewinds General Contracting in Boise, Idaho, recently spoke with CNBC to emphasize just how much lumber goes into the construction of a new home.

“This entire house is built out of wood,” Martinez showcased in a video that aired earlier this week. “I mean, we really do have wood on the floor, wood on the walls, wood on the ceiling. Can’t really get away from building a house like this without using a large number of wood products in the home.”

As a result, price increases to lumber can cause a huge disruption for home builders. And lack of certainty adds complexity to the home-building process.

“Our contracts are all fixed price — meaning that from the time we bid a project to the time we start to the time we order the materials, prices could change drastically,” Martinez explained. “But we are trying to preorder as much material as we can.”

“The hard part is — is where do you put that material?” he added. “We’re a small business. We don’t have a bunch of ground just where we’re able to stockpile lumber or drywall.”

See the full clip below:

Other members have shared their experiences with national and regional news outlets as well.

Last month following the “Liberation Day” announcement, Dan Mitchell, owner of Eagle CDI, told CNN although there was no immediate effect to his business because lumber and gypsum had been exempt, any change in pricing — whether long or short term — will have an impact.

“Any increase in pricing of any type of construction material causes our consumers to pay more,” Mitchell stated. “So we are concerned about the rising prices, we are concerned about the commodities that we’re using in new construction, and obviously, lumber, cement and other commodities such as that driving up prices for the consumers is going to have an impact on our builders being able to provide homes.”

According to the April NAHB/Wells Fargo Housing Market Index (HMI), on average, suppliers increased their prices by 6.3% in response to announced, enacted or expected tariffs. Builders estimate an average cost increase of $10,900 per home due to these tariff actions.

To help bring down costs, builders may have to get creative with how they source materials and finishes to complete their homes in the wake of the initial tariff announcement.

“Our choices may narrow down a little bit as tariffs come into play,” Alex Yost, founding partner at Exeter Building Company, shared with ABC News last month. “We’re going to be looking at pricing.”

Adam Aschmann, president of the Greater Houston Builders Association, also shared his concerns on the uncertainty tariffs are causing in the market with the Houston Chronicle and how this may impact the market for future generations, including his own children.

“How do you attain a house? How do you attain the American dream?” he posited to the reporter.

As the Trump administration continues to negotiate tariff policy internationally, though, the economic outlook may take a more positive turn.

“Recent developments on the tariff front concerning the United Kingdom and China along with major tax legislation advancing in Congress should provide a boost to housing demand and positive momentum for the economy,” Danushka Nanayakkara-Skillington, NAHB assistant vice president for forecasting and analysis, shared in a statement that was featured by CNN.

NAHB will continue to monitor the impact of tariffs and pricing on the home building industry. Learn more at nahb.org.