From Lumber to Lighting: Impact of Trump’s Proposed Tariffs on Homebuilding Costs Explained with Charts

NBC News conducted an analysis of the costs associated with building a typical three-bedroom house and discovered that tariffs have significantly increased total expenses, with an overall rise of more than $4,000. Specifically, materials such as lumber from Canada add about $534, while major appliances from China contribute an additional $445 to the costs. The findings reveal that due to President Donald Trump’s tariff policies, new homes in the United States are becoming increasingly expensive as these tariffs affect a broad spectrum of building materials. Experts have reviewed the NBC analysis and labeled its estimates conservative, with a survey from the National Association of Home Builders suggesting that the actual tariff impact could reach as high as $10,900 per home.

These figures do not take labor costs into account. Robert Dietz, the chief economist at the National Association of Home Builders, noted that the uncertainty created by these tariffs complicates pricing strategies for builders. With about 75% of builders struggling to set prices due to fluctuating construction input costs, this uncertainty is exacerbating the existing housing shortage in the U.S., which has already driven prices up. NBC’s modeling of an 1,800-square-foot home focused on import data and analysis of building materials.

They found that products from China, Mexico, and Canada would lead to the largest cost increases due to current tariff rates. For instance, materials imported from China alone could increase home costs by roughly $1,708. In total, the cumulative effect of tariffs adds more than $4,405 to the material costs, pushing the total from about $86,516 to $90,921 for such homes. The analysis highlights the potential financial implications of tariffs across different phases of construction, although it relies on simplified assumptions that may not capture long-term market dynamics or regional variations.