If You’re Planning to Buy, Build, or Remodel—Here’s What You Need to Know
You’ve finally decided it’s time. Maybe you’re building your dream home, remodeling that outdated kitchen, or planning a much-needed home addition. You’re excited, you’ve got Pinterest boards full of ideas, and you’re ready to get started!
But then—you hear about tariffs. Suddenly, people are talking about rising costs, material shortages, and delays. The price of lumber is going up, steel and aluminum are getting more expensive, and that new home or remodel you budgeted for might cost more than you expected.
Sound familiar? You’re not alone. Homeowners across the country are worried about rising prices and how these new tariffs will impact their projects.
The good news? You don’t have to put your dream on hold. At Southern Mesa, we’ve been navigating market changes for years, and we’re here to help you make the smartest decisions possible—without breaking the bank.
In this article, we’ll break down:
✅ What’s happening with new tariffs on construction materials
✅ How this affects home prices and remodeling costs
✅ What you can do to get the best value for your money
Let’s dive in.
What Are These Tariffs and Why Do They Matter?
Before we get into the nitty-gritty of home prices, let’s talk about what’s actually happening.
The U.S. Just Increased Tariffs on Key Building Materials
✔ Softwood lumber from Canada now has a 14.54% tariff (up from 8.05%)—and since Canada supplies a huge chunk of our wood, this is a big deal.
✔ Steel and aluminum imports (used in everything from appliances to roofing and framing) are also getting hit with higher tariffs.
✔ Tariffs mean higher prices for builders, which eventually means higher costs for you—the homeowner.
Why Is This Happening?
The U.S. government imposes tariffs to protect American manufacturers, but this often comes with trade disputes. Right now, there’s an ongoing disagreement between the U.S. and Canada over subsidized lumber prices. Meanwhile, steel and aluminum tariffs are being expanded to promote domestic production.
That’s all fine and dandy—but for homeowners? This means you’ll likely pay more for materials, labor, and even the cost of finished homes.
How Tariffs Will Affect Homeowners in 2025
Buying a New Home? Expect Higher Prices.
If you’re house hunting, get ready for some sticker shock. Builders are already adjusting their pricing to accommodate rising material costs.
✔ A typical new home requires 16,000 board feet of lumber—so even small increases in price add up fast.
✔ Higher lumber and metal costs mean fewer discounts and incentives from builders.
✔ Some projects may be delayed as builders wait for better pricing.
What You Can Do:
🏡 Lock in a home now. Waiting could mean paying more in six months.
💰 Ask about financing options. Some builders are offering incentives to offset higher costs.
Remodeling? Your Project Will Cost More.
If you’re planning a remodel, brace yourself for price hikes on key materials:
✔ Cabinets & Countertops: Many use softwood for framing—so expect a jump in costs.
✔ Roofing & HVAC Systems: Steel and aluminum are essential for these, and tariffs will make them more expensive.
✔ Appliances: Anything with metal (think refrigerators, stoves, dishwashers) is likely to see a price increase.
What You Can Do:
🔨 Start sooner rather than later. If you wait, costs may go up even more.
🛠️ Consider alternative materials. Engineered wood and composite materials may be a good workaround.
💸 Get multiple quotes. Different contractors have different supplier relationships, and pricing can vary.
What You Can Do to Save Money in 2025
Higher costs don’t have to stop you from moving forward! Here are some strategies homeowners can use to stay ahead.
1. Don’t Wait—Prices Will Likely Keep Rising
Historically, once tariffs go up, they don’t come back down overnight. If you’ve been considering building or remodeling, the best move may be to lock in prices now before they increase even further.
2. Get Multiple Quotes & Work with Experts
Some contractors have better supplier relationships and can get you a better deal on materials. Make sure you’re working with a trusted contractor who understands how to navigate price fluctuations.
3. Be Open to Alternative Materials
Some newer materials can be just as strong and durable as traditional options:
✔ Engineered wood can replace some softwood applications.
✔ Reclaimed or salvaged materials can be an eco-friendly and cost-effective choice.
✔ Composite materials are being used more for decks, siding, and cabinetry.
Stay Informed & Be Proactive
Yes, home prices and remodeling costs are rising—but you’re not powerless. By acting sooner, working with the right professionals, and exploring material alternatives, you can keep costs down and still get the home you want.
At Southern Mesa, we specialize in helping homeowners navigate market changes. If you’re thinking about building or remodeling, reach out to us today—we’ll help you make the smartest choices in 2025!
FAQs: Homeowners’ Biggest Questions About Tariffs & Housing Costs
1. Will home prices go down in 2025?
Probably not. With material costs rising, home prices are expected to stay high or increase in most markets.
2. Should I wait to remodel my home?
If you’re planning to remodel, waiting may cost you more. Material prices are rising, so locking in a price now is often the smarter move.
3. Will the tariffs on lumber and steel ever go away?
Possibly, but trade disputes can last years. For now, homeowners should plan for higher costs in the near future.
4. What’s the best way to save money on a remodel in 2025?
✔ Get multiple quotes from contractors
✔ Consider alternative materials
✔ Lock in pricing before costs rise again
5. How do I start a home project with rising costs?
Talk to a trusted contractor who can help you navigate price changes and find the best value for your budget.
Thinking about building or remodeling? Let’s talk! Contact Southern Mesa today and let’s get started before costs rise even more.
