If you’re planning to build, buy, or renovate in New Jersey anytime soon, brace yourself—those plans may be getting more expensive.
With a new wave of proposed tariffs set to be unveiled by former President Donald Trump, the homebuilding industry is bracing for significant cost increases. Despite Trump’s well-known ties to real estate, builders across the country—including here in the Garden State—are concerned that the tariffs will hit one of the most housing-sensitive sectors of the economy just as it starts to regain momentum.
Home construction and renovation rely heavily on imported materials, many of which come from Canada, Mexico, and China—three countries now facing the possibility of steep tariffs. According to the National Association of Home Builders (NAHB), nearly one-third of all lumber used in U.S. home construction is imported, with 70% of that coming from Canada. That lumber is already taxed at a rate of 14.5%, and prices have jumped nearly 16% compared to a year ago.
“These tariffs will be felt in every room of a newly built home,” said Jim Tobin, NAHB’s president and CEO. “From drywall sourced in Mexico to lighting and electronics from China, the added costs will ripple through every stage of the construction process.”
The timing couldn’t be worse. After years of high mortgage rates and steep home prices, the real estate market had finally begun to show tentative signs of recovery this spring. But the comeback has been uneven, and builders say the potential for a 25% tariff on key materials could stall or reverse progress.
In New Jersey, where housing demand remains high—particularly along the shore and in rapidly growing suburbs—any increase in construction costs could further price out middle-income families. The NAHB estimates that the added tariffs could raise the cost of a new home by approximately $9,200. Other industry surveys suggest the increase could be even steeper, potentially tacking on as much as $25,000 to the median-priced home.
Tobin also pointed out that housing is a major contributor to inflation, which has been a central issue for voters. “The president has pledged to address the cost of living and build more homes, but these tariffs work directly against that goal,” he said.
As New Jersey builders and homeowners prepare for another busy season of construction and renovation, all eyes are on Washington. One thing is certain: whether you’re adding a new deck in Hoboken or building your dream home in Cape May, this policy shift may mean you’re paying more for every nail, beam, and light fixture.