The National Association of Home Builders reports tariffs are expected to raise single family home prices between $7,500 and $10,000. Now, area contractors are bracing themselves. PC: Fox 11 Online
BROWN COUNTY, WI (WTAQ-WLUK) — If you’re in the market to build a new home or start a remodeling project, get ready to pay up.
Tariffs on imported goods from Mexico, Canada and China are driving prices higher, and they’re expected to keep going up — meaning building your dream home may not get done as cheaply as you’d like.
The National Association of Home Builders reports tariffs are expected to raise single-family home prices between $7,500 and $10,000.
Now, area contractors are bracing themselves.
“With the pricing going up, then I have to pass it on to the customers, which in turn raises the price of the project. It kind of gets [to be] a little deterrent,” said Josh Russell, owner of Builders Command.
Russell said he’s seeing a 15% to 20% increase in building materials, with metal being the most expensive, and lumber fluctuating too. Much of their lumber comes from Canada.
The higher prices may drive where a consumer’s home project goes, making cuts as needed.
“We’re gonna still try and make your budget work, but it just means we’re gonna have to tone back in some area, and sometimes, it’s we don’t do one more room, or we make it a little more open, or we plan ahead,” Russell said.
Russell said building a home from scratch, rather than just a remodel, will be hurt most by prices.
More increases are expected. Robert Peters Construction anticipates a 10% increase on materials this year by April. They worry if prices keep going up, it’ll discourage people from building new — in turn, boosting secondary home prices.
“I don’t see prices coming back down, so if you’re gonna build a house, I’d recommend kind of just get into it and start doing it now,” said Dan Peters, owner and president of Robert Peters Construction.
Peters said acting now is important because once a home is started, those prices are locked in. To get ahead of incoming tariffs, suppliers are stocking up on the maximum amount of lumber or plumbing supplies.
“Try and stay ahead of the curve to make sure that if, let’s say lumber goes up 15% — maybe they only go up 7% — and then if a deal is reached and lumber comes back down, then they can kind of level out without ever hitting any of their customers too hard,” Peters said.
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