Tariffs raise homebuilding costs up to $102k in states

US: A new study from Evernest finds that U.S. President Donald Trump’s tariffs on international countries have added up to $102,400 to homebuilding costs in some states. 

Since Trump announced tariff plans and pledged lower costs for Americans, annualized inflation rates have increased. Last month, prices were 2.4 per cent higher than a year ago, according to a recent U.S. inflation report. 

With rising inflation and Trump’s tariffs on international goods, home building costs in the U.S. are beginning to see the effects. 

Evernest’s report analysed the average construction costs based on a standard 2,200-square-foot home and the four main homebuilding materials deemed most likely to be affected by tariffs: softwood lumber, steel and aluminum, copper and drywall. During the report, Evernest found that there was a 15.92 per cent increase in the four key material costs after tariffs were imposed. 

Evernest’s report claimed that the following states currently hold the biggest change in homebuilding costs after Trump’s implied tariffs:

• Hawaii: cost difference of $102,400
• California: cost difference of $68,200 
• Massachusetts: cost difference of $62,600
• New York: cost difference of $62,600
• New Jersey: cost difference of $54,600
• Alaska: cost difference of $51,200
• Connecticut: cost difference of $48,900
• Rhode Island: cost difference of $48,900
• Colorado: cost difference of $45,500
• Maine: cost difference of $45,500

A spokesperson from Evernest, who commented on the report, said: “Tariffs on building materials are pushing up the base price of new homes in every state. For younger buyers, that extra $30,000 is a real barrier, and not just a line item. The data shows that these policies affect real affordability, especially in places where incomes haven’t kept pace with construction costs.”

Highlights: 

• Trump-era tariffs have added up to $102,400 to homebuilding costs in some U.S. states, according to a recent Evernest report.
• Key materials affected include softwood lumber, steel and aluminum, copper and drywall, which have seen a 15.92 per cent average cost increase.
• States most impacted include Hawaii, California and Massachusetts.