America was already in a housing affordability crisis before tariffs. The median home price hit $420,000 in 2024. Then came tariffs on virtually every material used to build a home. The National Association of Home Builders estimates tariffs have added $7,500 to $10,800 to the cost of a typical new single-family home.
The Building Materials Tax
| Material | Tariff Rate | Added Cost |
|---|---|---|
| Softwood lumber (Canada) | 25% + 8% CVD | $2,800 |
| Steel (structural, rebar) | 25-50% | $1,800 |
| Aluminum (windows, siding) | 25% | $1,200 |
| Appliances (washer, HVAC) | 20-54% | $2,100 |
| Tile, fixtures, hardware | 10-54% | $1,350 |
| Other (copper, glass) | 10-25% | $1,550 |
| TOTAL | $10,800 |
The Affordability Squeeze
At current mortgage rates, $10,800 in tariff costs translates to $72 more per month over 30 years โ $25,920 over the life of the loan. The NAHB estimates every $1,000 increase prices out 113,000 households. At $10,800, that's 1.2 million households priced out of homeownership.
Rental Market Impact
Higher construction costs reduce new rental supply. Multifamily construction starts down 12-18% since mid-2025 โ catastrophic in a market with a 4-million-unit deficit.
Infrastructure Multiplier
Schools, hospitals, bridges โ all use tariffed materials. ASCE estimates tariffs increased infrastructure project costs by 8-15%, reducing the purchasing power of the bipartisan infrastructure law by tens of billions.
Key Takeaways
- โ Tariffs add $7,500-$10,800 to the cost of a new single-family home
- โ An estimated 1.2 million households priced out of homeownership
- โ Multifamily construction starts down 12-18%, worsening the rental crisis
- โ Infrastructure projects cost 8-15% more
- โ Home renovation spending fell 8% as homeowners defer upgrades