Tariffs On Lumber And Appliances Set Stage For Higher Costs On New Homes And Remodeling Projects

Shopping for a new home? Ready to renovate your kitchen or install a new deck? You'll be paying more to do so.

The Trump administration's tariffs on imported goods from Canada, Mexico and China - some already in place, others set to take effect in a few weeks - are already driving up the cost of building materials used in new residential construction and home remodeling projects.

The tariffs are projected to raise the costs that go into building a single-family home in the U.S. by 7,500 to 10,000, according to the National Association of Home Builders. Such costs are typically passed along to the homebuyer in the form of higher prices, which could hurt demand at a time when the U.S. housing market remains in a slump and many builders are having to offer buyers costly incentives to drum up sales.

We Buy Houses in San Francisco, which purchases foreclosed homes and then typically renovates and sells them, is increasing prices on its refurbished properties between 7 and 12. That's even after saving 52,000 in costs by stockpiling 62 more Canadian lumber than usual.

"The uncertainty of how long these tariffs will continue has been the most challenging aspect of our planning," said CEO Mamta Saini.