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Tariffs to add as much as $10,000 to the cost of the average new home, trade association says
KBHKB Home(KBH) CNBC·2025-03-13 16:00

Core Viewpoint - President Trump's tariffs could significantly increase material costs for new homes, potentially by up to 10,000,impactinghousingaffordability[1][2][3]Group1:TariffImpactonHomeConstruction−TheNationalAssociationofHomeBuilders(NAHB)reportedthatTrump′stariffscouldraisematerialpricesfortheaveragenewsingle−familyhomebybetween10,000, impacting housing affordability [1][2][3] Group 1: Tariff Impact on Home Construction - The National Association of Home Builders (NAHB) reported that Trump's tariffs could raise material prices for the average new single-family home by between 7,500 and 10,000[2]−TheNAHBhasbeenadvocatingagainsttariffsduetotheirnegativeeffectsonhousingaffordability,describingthemasataxonbuilders,homebuyers,andconsumers[3]−Theimplementationofa2510,000 [2] - The NAHB has been advocating against tariffs due to their negative effects on housing affordability, describing them as a tax on builders, home buyers, and consumers [3] - The implementation of a 25% tariff on Canadian and Mexican imports could increase total costs for imported construction materials by over 3 billion [4] Group 2: Sources of Construction Materials - Softwood lumber is primarily sourced from Canada, while gypsum, a key component of drywall, comes mainly from Mexico [4] - Other materials such as steel, aluminum, and completed home appliances are imported from China, which are also subject to increased tariffs [4]