Construction materials may be about to get a lot more expensive
A new report has indicated that tariffs imposed on Canadian construction materials could significantly increase the cost of building a home in the United States, potentially adding over $10,000 to the average cost by the end of 2027. This projection comes from a report by the Canadian Chamber of Commerce, highlighting concerns about housing affordability at a time when home prices are already at near-record highs.
Canada serves as a supplier of essential construction materials to the US. In 2023, Canada accounted for 69% of US lumber imports, 25% of imported iron and steel, and 18% of refined copper imports, the report noted. These materials are fundamental to new home construction, apartment complexes, and renovation projects across the country. The reliance on these imports means that tariffs directly impact the cost of building.
Impact on the American dream
The Canadian Chamber of Commerce’s Business Data Lab emphasizes that while tariffs are often framed in geopolitical terms, their direct impact is felt by US households. The report, titled Building trouble: How US tariffs on Canadian construction materials are pricing out the American dream, suggests that duties on foreign construction materials have already added up to $6,000 to the cost of building a single-family home in the US between 2018 and 2024.
If current measures persist, this figure could climb another $14,000 by the end of 2027, bringing the total added cost from tariffs to $20,000 per home.
The White House has maintained that the cost of tariffs will be borne by foreign exporters, not American consumers, a report from CNN noted. White House spokesperson Kush Desai stated, “The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers, but by foreign exporters who rely on access to the American economy, the world’s biggest and best consumer market.”
However, the National Association of Home Builders (NAHB) indicates that 60% of home builders surveyed in April have already experienced tariff-related price increases. States heavily reliant on imported construction goods, such as Texas, Florida, and California, are expected to feel these price shocks most acutely. The uncertainty surrounding tariff policies also makes it difficult for builders to accurately price construction projects.
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