New tariffs might inflate your construction costs—how will they impact your projects? Trade shifts impact prices and sourcing, rippling through trade, materials, and markets—leaving no easy answers. Read on.
To understand the significance of tariffs, let’s examine the cost breakdown of a typical home courtesy of Dr. Eisenberg, an internationally acclaimed economist.
The median home price in 2024 was $440,000. Of this, $268,000 can be attributed to construction costs, with $118,000 going towards materials. With less than 8% of these materials being imported, you’ll see the actual cost increase to an average home due to a 30% tariff would be roughly $2,500.
The effect of a 30% tariff on imported materials may be less significant than it might first seem, potentially only adding roughly $2,500 to the cost of an average home. 
To get a clearer picture of the current market situation, let’s take a look at the latest trends in material prices as of December 2024.
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Thank you,
Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com
