USA – The National Association of Home Builders (NAHB) has highlighted that the ongoing shortage and significant rise in building material costs, from softwood lumber to distribution transformers, are driving up home construction expenses and harming housing affordability.

Factors such as inflation and global trade uncertainties are contributing to this trend.

In 2023, NAHB estimates that USD 184 billion in goods were used in the construction of new multifamily and single-family homes, with USD 13 billion of those goods (about 7%) imported from outside the U.S.

Tariffs, essentially taxes on imported goods, raise the price of materials, often resulting in higher costs for consumers. Proposed new tariffs on construction materials from China, Canada, and Mexico could add an additional USD 3 to USD 4 billion to the cost of imports, depending on the rates.

For materials that are critical to supply, these tariffs could lead to dramatic price hikes, increasing overall construction costs and potentially hindering builders’ ability to deliver new homes.