Trump’s Tariffs Could Add $45K to Cost of New Homes in 10 States
Written by
Vance Cariaga
Edited by
Cory Dudak
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One big driver of this decade’s surge in home prices has been a rise in building material costs that started during the COVID-19 pandemic. Those costs went up largely because of global supply-chain problems.
Now the housing industry is bracing for another spike in materials costs tied to President Donald Trump’s tariff plans — and home prices are expected to surge, as well. Tariffs have already added more than $100,000 to the cost of a new home in at least one state, according to a new study from Evernest, a provider of property management and real estate brokerage services. Many other states are also seeing prices rise by tens of thousands of dollars because of the Trump tariffs.
“Tariffs on building materials are pushing up the base price of new homes in every state,” Evernest noted in an email to GOBankingRates. “The data shows that these policies affect real affordability, especially in places where incomes haven’t kept pace with construction costs.”
10 States Seeing Biggest Home Price Spikes
For its study, Evernest analyzed average construction costs in the U.S. based on a standard 2,200-square-foot home. Researchers focused on four core materials most likely to be affected by tariffs: softwood lumber, steel and aluminum, copper and drywall.
Evernest determined that implied tariffs would result in a 15.92% nationwide increase in materials costs. It then calculated how much extra each state would likely pay on average, excluding labor, permits and mortgage rates.
Here are 10 states where tariffs are expected to add an additional $45,000-plus in construction costs vs. pre-tariff baseline costs:
- Hawaii: $102,400 (in extra costs)
- California: $68,200
- Massachusetts: $$62,600
- New York: $62,600
- New Jersey: $54,600
- Alaska: $51,200
- Connecticut: $48,900
- Rhode Island: $48,900
- Colorado: $45,500
- Maine: $45,500
Canada Tariffs Hit Hard
Tariffs on Canadian lumber have had a particularly big impact, according to a recent report from the National Association of Home Builders (NAHB). It noted that Canada accounts for roughly 85% of all U.S. softwood lumber imports, and represents nearly one-quarter of the U.S. supply.
As of April 2025, the U.S. Commerce Department imposed 14.5% tariffs on Canadian lumber and has “signaled that it plans to more than double 14.5% tariff rate later this year to 34.5%,” the NAHB noted. In addition, “numerous” raw materials and components are also subject to the Trump tariffs, ranging from steel and aluminum to home appliances.
“For some materials, where imports are critical to supply, prices could see dramatic increases, adding layered costs that could substantially impact builders’ ability to deliver new projects,” the NAHB added.
Data from the NAHB/Wells Fargo Housing Market Index (HMI) April 2025 survey found that builders estimate a typical cost effect from recent tariff actions at $10,900 per home.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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