Across industries, tariffs raise the cost of importing goods into the U.S., directly impacting consumer pricing. Homeowners who are planning to renovate—whether they hire a contractor or complete the work themselves—are particularly exposed to widespread increases in the cost of building materials due to the most recent tariffs.
To discover how tariffs will impact homeowners, the research team at This Old House analyzed data from the National Association of Home Builders (NAHB), the White House, and Realtor.com. We also spoke to several experts to gain their insight into what tariffs mean for homeowners and their renovation plans.
Tariffs, combined with the current skilled labor shortage, continue to increase home renovation costs nationwide. Although homeowners can save money on labor costs by completing renovations themselves, skirting the rising costs of materials proves more challenging. In some instances, demand for certain building materials can only be fulfilled by imported goods.
Key Takeaways
- Announced in April 2025, a 10% baseline tariff on all imports will likely be implemented in July and will directly raise costs for home renovation materials.
- Canadian softwood lumber—used heavily in home construction—faces a 14.5% tariff, which may jump to 34.5% later this year, according to the NAHB.
- The NAHB estimates an added $10,900 to the cost of new homes due to tariffs.
- Imported materials such as tile, scaffolding, and gypsum have few domestic substitutes, making tariff impacts unavoidable for many homeowners.
- Experts agree that higher material costs from tariffs are typically passed on to homeowners, making home renovations and DIY projects more expensive.
What Are Tariffs, and Why Do They Matter to Homeowners?
Historically, tariffs have been intrinsic to the U.S. trade policy established with other countries. Tariffs represent one method the federal government uses to raise funds, specifically via taxation of countries importing goods. Tariff amounts are determined based on the country of origin and the particular product.
In April 2025, President Trump imposed a 10% baseline tariff on all imports, which now has a 90-day pause. This new tariff policy increases the effective tariff rate to around 24%, up from the 2.3% rate seen prior to President Trump taking office, according to Capital Economics.
“The volatility of building materials pricing is a concern for the industry,” says Kelly Aust, national president of the National Association of Women in Construction (NAWIC). The new baseline tariff is expected to directly increase costs for home renovation materials, especially where imports greatly affect supply, according to the NAHB.
“Any goods and services with production dependent upon an import that can’t find a domestic substitute at the original import’s price will see an increase in production cost and decrease their supply of the good, increasing the cost [to the] consumer,” says Devon Hawkins, lecturer in economics at Elon University.
The Impact of Tariffs on Home Projects
As homeowners plan for renovations and budget accordingly, determining the materials that will cost more with tariffs can be difficult without knowledge of previous pricing. The cost of building materials has surpassed the rate of inflation, increasing 34% since December 2020, according to the NAHB. The NAHB also estimates that building costs will increase by $10,900 per home. However, the exact additional cost due to higher tariffs depends heavily on the materials used.
“Price fluctuations in materials like lumber, steel, and concrete complicate project planning and budgeting” and are “often driven by supply chain disruptions, labor shortages, and shifts in global demand,” says Aust. For instance, Canadian softwood lumber—a staple in home construction—now faces a 14.5% tariff that could more than double to 34.5% later this year, according to the NAHB. “Lumber imports will be impacted if American production isn’t as efficient and lacks the comparative advantage over our foreign trading partner,” says Scott Talbert, COO of Talbert Building Supply.
Other imported materials, such as tile, scaffolding, and gypsum, have few domestic substitutes to relieve the impact of tariffs on homeowners. “Roughly 90% of scaffolding imports [are] from other countries, mostly China. There is also not an extensive ladder manufacturer here domestically, with the majority importing from Mexico,” says Matt Hurley, purchasing and inventory manager at Associated Scaffolding Inc.
Tariffs also impact project lead times as importers and contractors adjust. For example, if a building material is in particularly high demand but is now in low supply due to increased import costs, lead times could extend several months or longer. “If consumers are buying at the bottom end of the cost spectrum, those materials are most likely to be imported and thus be impacted by tariffs,” says Ben Bigelow, director and associate professor at the University of Oklahoma.
Prices Can Vary Depending on Where You Live
Of the estimated $204 billion worth of goods used to construct new single- and multi-family homes in 2024, approximately 7% ($14 billion worth) were imported, according to the NAHB. However, the exact ratio between domestically sourced and imported goods varies depending on location.
“The impacts of tariffs will depend on regions of the country and where they source materials. For example, in the North, a large amount of lumber is sourced from Canada; in the South, much of it is domestically produced. However, in the South, there are brick manufacturers whose products are being imported from Mexico,” says Bigelow.
Tariffs Equal Higher Prices for Homeowners
Increased tariffs can significantly impact the speed at which new homes are built and their subsequent pricing. Homebuilders must either cut into their profit margins or raise prices accordingly, while still navigating potential material sourcing delays that can set projects back from a few weeks to a few months or more.
Several regions across the U.S. have experienced recent rapid new home build growth. In March 2025 alone, roughly 18% of homes on the market were newly built, according to Realtor.com. Below are the top five states where the most new homes were built that month:
- Idaho: 40% of active listings are new builds.
- North Carolina: 33% of active listings are new builds.
- Delaware: 31% of active listings are new builds.
- Nebraska and Utah (tie): 28% of active listings are new builds.
Yet the question remains: Who pays the cost of tariffs? Experts agree that tariff-based increases in material costs get passed on to homeowners, thereby swelling the cost of home DIY projects and related renovation expenses.
Our Conclusion: Know Before You Renovate
Homeowners can implement their newfound knowledge of rising tariffs in several ways as they approach renovations. For instance, contractors may include a tariff clause that permits them to alter pricing based on existing tariffs. Carefully review renovation contracts—specifically the sections that may address adjustments based on tariffs—before agreeing to any terms.
As you gather multiple quotes, ask contractors about lead times based on where they source materials. Anticipate that projects incorporating several imported materials will take longer than expected, especially as those materials become more scarce due to fluctuating supply.
Tackling home projects yourself can limit the potential for renovation project price hikes based on varying contractor profit margins. However, even the handiest homeowners are still subject to elevated material costs. Add a cushion to your budget to accommodate unexpected rises in expenses that could play out over the next several months or even years due to tariffs.
