In Waukesha, Wisconsin, the recent steel and aluminum tariffs imposed by President Donald Trump could soon affect homebuilding costs. Builders like David Belman, president of Belman Home, are already feeling the impact from prior tariffs on imported products, particularly from China, and anticipate further price increases due to these new tariffs.

What You Need to Know

Impact of Tariffs on Homebuilding

Tariffs on steel and aluminum could raise the costs for builders across Wisconsin, as many materials in home construction are imported, especially from China.

Current Impact‍

According to Belman, products such as appliances, cabinet pulls, doorknobs, screws, and nails — all of which are commonly imported — are already subject to tariff costs.

Looking Forward‍

While Belman does not expect the new tariffs on steel and aluminum to significantly impact homebuilding costs, the National Association of Homebuilders (NAHB) has sent a letter to the administration requesting exemptions for the construction industry. Belman stated, “The National Association of Homebuilders has sent a letter to the President requesting that they give some consideration to the construction industry or some exemptions to help with the cost of the home.”

Cost Breakdown‍

While tariffs could account for up to 8% of a new home’s cost, Belman noted that regulation remains the biggest challenge, contributing to 25% of construction costs. His hope is that while the industry is currently dealing with "short-term pain" from tariffs, long-term benefits may come from deregulation that could offset these rising costs in the future.

‍Advice to Homebuyers‍

Belman’s message to prospective buyers is clear: "Don’t wait." While the impact of tariffs may take a few months to show in pricing, homebuyers should be prepared for an increase in home prices as the effects of these tariffs gradually make their way through the industry.

In the meantime, builders are navigating both short-term challenges and hoping that future regulatory reforms will provide long-term solutions to the rising costs of homebuilding.

Originally reported by Megan Marshall in Spectrum News.