Rising costs of construction materials, driven in part by tariffs on imports, are putting pressure on both homebuilding and public infrastructure projects in Florida, according to a new report from the nonpartisan watchdog group Florida TaxWatch.
The study highlights that U.S. producers have not yet scaled up domestic production to offset higher import costs. This shortfall has left builders grappling with elevated prices across multiple sectors.
“Higher costs of construction materials in Florida can raise the price of a house by approximately $10,000,” the report stated. “The Florida Department of Transportation also expects a rise in cost of construction of 5% to 9%.”
The report found that rising costs have already caused a 4% budget overrun on affordable housing projects. The burden is particularly heavy for low- and middle-income buyers, as each added cost translates into reduced affordability.
For infrastructure, the impact is equally concerning. Fabricated metals used in bridge construction have increased 22.5% in price over the past year, adding millions of dollars to transportation budgets. The Florida Department of Transportation now anticipates across-the-board cost increases for road projects.
Seventy-five percent of the lumber imported into the U.S. comes from Canada, while much of the gypsum for drywall comes from Mexico. With tariffs as high as 50% on steel, aluminum, and copper imports as of August, the price shock has been severe.
“Domestic production of construction materials is not up to par yet,” Florida TaxWatch noted. “Yet we still do not have enough concrete to fulfill construction demands in the state. This creates the need for importing these raw materials.”
Despite higher costs, Florida’s construction sector is still expanding, fueled by the state’s ongoing population growth and demand for new infrastructure.
The report linked the higher costs to a slowdown in housing activity. In May 2025, Florida recorded its slowest pace of housing starts in five years, with inventories climbing as fewer buyers entered the market.
Still, the state remains a magnet for new development. “As of May 2025, the construction industry is expected to grow seven percent in 2025, with a focus on mixed-use and infrastructure developments,” the report said. “Although contractors remain positive about the construction industry, prices in the sector have increased throughout the state.”
The report also placed today’s price hikes in a longer context. Supply chain problems and labor shortages dating back to the COVID-19 pandemic drove up construction costs across the country. Although costs peaked in 2022, they remain significantly above pre-pandemic levels.
The combination of tariffs, limited domestic production, and persistent demand continues to keep Florida’s builders under strain.
Originally reported by David Beasley in The Center Square.
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