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Steel Tariff's Impact On Home Pricing

Although not imposed yet, this administration supports imposing tariff's on steel and aluminum imported into the U.S. to help boost domestic production and add new jobs. Home builders throughout the U.S. did not take this news well, as many use these metals for new construction and will wind up paying more for these materials, passing the additional costs onto consumers.

In November, the Department of Commerce imposed a 20.83% tariff on shipments of softwood lumber from Canada. The price of lumber increased nearly 15%. The costs have largely been passed along to consumers, and have seen new home prices touch new highs. However, new homes typically have more wood than metal. Whereas buying lumber represents one-third of the cost of building a new home, steel and aluminum contribute to between 0.5% and 1% of a home's cost.

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