Trump's Steel Tariffs Could Push Housing Costs Higher

New 25% tariffs on steel and aluminum may raise construction expenses and delay projects, exacerbating the U.S. housing shortage.

The 25% steel and aluminum tariffs, set to take effect on March 12, are expected to increase construction costs for mid- and high-rise buildings, which rely heavily on steel.
Developers may delay or cancel projects due to rising material costs, further straining housing supply in an already tight market.
The National Association of Homebuilders criticized the tariffs as counterproductive to President Trump's stated goal of reducing housing costs and increasing supply.
Tariffs on other construction materials, such as Canadian lumber and Mexican drywall, are also being considered, potentially compounding cost pressures for builders.
Economists and industry leaders warn that higher costs could be passed on to renters and buyers, worsening affordability challenges in the housing market.