Tariffs will increase new home costs in Tri-State

The National Association of Home Builders (NAHB) warns that new tariffs on building materials will lead to higher costs for homebuyers and renovators. These tariffs, particularly on lumber from Canada, Mexico, and China, could mean an increase of up to $10,000 for new homes. Local contractors in the Tri-State area are already noticing rising prices. For instance, KBC Remodeling has seen a 15% increase in some cabinet materials from Canada. Despite these changes, KBC's owner, Ken Bryan, believes the impact on business will be manageable. He thinks people will adapt to the higher prices, just as they did during the COVID pandemic. Currently, lumber prices are already 14.9% higher than they were last year. They also rose by 5.9% in the last month. Bryan suggests that if people become accustomed to these costs, they will continue to purchase homes and remodels. Home builders are particularly challenged now, as this is usually their busiest season. Ryan Biehl from Biehl Brothers Contracting expects the tariffs to affect his business, but he remains confident in his ability to adapt. He emphasized that problem-solving is a key skill in this industry. Starting next month, tariffs on Canadian lumber will rise to 39.5%. This change is expected to further increase costs for homeowners and builders.