Report: Materials impacted by tariffs raising home construction price

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(The Center Square) – Rising prices of construction materials, partially fueled by tariffs, are increasing the cost of home construction and roadbuilding in Florida, according to a new report.

Producers of materials in America have not had time to ramp up production to offset the higher import prices as a result of tariffs, according to the report by the nonprofit group Florida TaxWatch.

“Higher costs of construction materials in Florida can raise the price of a house by approximately $10,000,” the report said. “The Florida Department of Transportation also expects a rise in cost of construction of 5% to 9%.”

Seventy-five percent of lumber imported into the U.S. comes from Canada, the report said. The U.S. also imports gypsum used in drywall from Mexico.

The higher material costs have caused a 4% overrun in affordable housing projects, the report said.

There have been even larger increases in the prices of fabricated metals used in bridges, which have jumped by 22.5% in the last, the independent nonpartisan taxpayer research institute said.

The report notes that construction costs have been increasing since the COVID-19 pandemic era, in part due to supply chain problems and rising labor costs. The increase peaked in 2022 but costs are still higher than they were before the pandemic.

As of August, there has been a 50% tariff on teel, aluminum, and copper imports in the U.S.

“Domestic production of construction materials is not up to par yet,” TaxWatch said.

Florida is among the top producers of crushed stone used in construction.

“Yet we still do not have enough concrete to fulfill construction demands in the state,” the report said. “This creates the need for importing these raw materials.”

The higher construction costs could be contributing to a slowdown in home sales, the report said.

In May, housing starts in the state were the slowest in five years with inventory increasing as a result of lower demand from buyers.

However, Florida is still growing in population and urban development despite the higher construction material prices, according to the report.

“As of May 2025, the construction industry is expected to grow seven percent in 2025, with a focus on mixed-use and infrastructure developments,” it said. “Although contractors remain positive about the construction industry, prices in the sector have increased throughout the state.”