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Tariffs Not Good News When It Comes To New Home Construction

March 29, 2018

new home construction

Lumber and steel are two of the most used components in home building, however tariffs placed on both by the White House administration could unfortunately result in higher new home prices. Duties of more than 20% have been levied against producers of softwood lumber in Canada for some time. Considering approximately 30 to 35% of softwood lumber used in new home construction in the U.S. comes from Canada and the huge need for lumber resulting from natural disasters over the last year, these issues are hugely concerning.

When it comes to steel, the President has threatened a 25% tariff on imports. While that’s good news for American steel producers, it’s not such good news for home builders who often use steel in floors and foundations. Steel is regularly used in the construction of high-rise buildings (apartments, condos, etc.) as well.

Builder trade groups including the National Association of Home Builders are criticizing the new tariffs and how they will affect pricing, which of course trickles down to homeowners, renters and many others. Chairman of the NAHB Randy Noel said in reports that “Tariffs hurt consumers and harm housing affordability.” Noel went on to say that considering the tariffs placed on Canadian softwood lumber builders are already dealing with, the news that tariffs may be placed on steel imports could not have come at a worse time.

Many industries would be impacted by steel tariffs including the auto industry and even beverages packaged in aluminum. The impact of these tariffs is far-reaching, and considering home construction generally involves more wood than steel, the blow may not be as hard on our industry as on some others. Still, time will tell just what these tariffs mean for our country and how it could affect new home prices.

Bud Bartley Family of Builders is a leader in the custom home building industry in Flower Mound and throughout North Texas. We incorporate green building materials and practices, resulting in quality, energy efficient homes that are beyond beautiful.

Filed Under: New Homes North Texas Tagged With: custom home building, new home construction tips, new homes

Bud Bartley Family of Builders
972.539.2591
Certified Green Professional National Association of Home Builders Texas Association of Builders Dallas Builders Association
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