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4w ago

Trump Tariffs Drive Up Texas Housing Costs, Raising Concerns Before Hurricane Season

New tariffs on construction materials threaten affordability, supply chains, and disaster recovery efforts, despite exemptions for Canadian lumber.

A construction worker is seen on the site of a new development in San Gabriel, California, on March 24, 2025. Home builders could face higher costs due to tariffs enacted by US President Trump. More than 70% of softwood lumber and gypsum are imported to the US from Canada and Mexico, according to the National Association of Home Builders.
A for sale sign in front of a home in Arlington, Virginia, on August 22, 2023.
A construction worker examines part of a building under construction in Brick, N.J. on July 10, 2023.
Officials from Lennar homebuilders talk with a compliance officer from the Occupational Safety and Health Administration, at right, at the site where a home under construction collapsed in high winds Tuesday, May 23, 2023, in Conroe.

Overview

  • The National Association of Home Builders estimates that tariffs have added $9,200 to the cost of building a single-family home, exacerbating Texas's ongoing housing affordability crisis.
  • Texas builders warn that tariffs on steel, gypsum, and concrete could lead to material shortages and higher prices, complicating hurricane season preparations and post-disaster recovery.
  • Insurance premiums are expected to rise as higher repair and rebuilding costs are passed on to consumers, according to the American Property and Casualty Insurance Association.
  • Exemptions for Canadian lumber provide temporary relief, but other imported materials critical to construction face steep tariffs, disrupting supply chains and raising costs nationwide.
  • While some experts believe the tariffs could benefit Texas's timber industry in the long term, builders and homebuyers face immediate financial strain due to increased costs and limited supply.