Building and Remodeling Costs Are on the Rise

If you’re planning a construction or remodeling project, it’s essential to stay informed about current trends. One significant trend making waves is that tariffs are driving up the cost of materials, and fast!

Since the COVID-19 pandemic, construction material prices in 2025 have already risen by an average of 40% compared to February 2020.

Impact of Tariffs on the Construction Industry

In early 2024, the Biden administration announced increased tariffs on a range of Chinese imports, including steel, aluminum, semiconductors, and electric vehicles. According to Better Homes & Gardens, these changes aim to strengthen domestic manufacturing. However, in the short term, they’re creating major ripples in the construction industry.

As of April 2025, the Trump administration has imposed a 25% tariff on steel and aluminum imports. This comes alongside additional tariffs on construction machinery, electrical components, and lumber. These tariffs are expected to drive up material costs even further. This adds pressure to an already volatile market and supply chain. There is also a universal 10% tariff on all imported goods. Both Canada and Mexico face a 25% tariff on select materials. Meanwhile, imports from China could see a potential 145% tariff.

What This Means for Homeowners and Developers

If you’re planning a new build, remodel, or even a small addition, be prepared for higher price tags on:

• Steel products (think framing, rebar, and structural supports)

• Aluminum windows and doors

• Electrical components (like wiring, fixtures, and panel systems)

• Imported appliances, fixtures, and lighting

  
  

These cost increases trickle down from manufacturers to contractors to—you guessed it—homeowners. Whether you're designing your dream home or investing in a new income property, this shift can affect everything from budgeting to timelines.

Strategies for Managing Costs

So, what can you do to manage these rising costs effectively?

1. Assess Your Budget: Begin by reviewing your budget. Understand where the increased costs will hit and how this may affect your overall financial plan.

2. Consider Local Resources: Explore local materials as alternatives to imported products. This shift can help you avoid tariffs while supporting domestic businesses.

   
   

3. Prioritize Your Needs: Focus on essential renovations first. If possible, consider postponing non-critical projects until material costs stabilize.

   
   

4. Stay Informed: Keep up to date on changes in tariffs and material prices. Knowledge is power when it comes to planning your project.

   
   

Working with Professionals

Working with a professional who understands how to navigate shifting costs, evolving regulations, and efficient design strategies is more important than ever.

At *MRM|AD, we’re already adapting* —sourcing alternative and local materials, coordinating closely with vendors and fabricators, and helping clients make informed decisions. Our goal is to ensure quality and vision are not compromised.

If you’re considering a project and want to stay ahead of the curve, we’d love to help you strategize and maximize your investment.

Conclusion

In conclusion, the rising costs of building and remodeling are a critical concern for many homeowners and developers. The impact of tariffs cannot be ignored, and planning ahead is essential. With careful budgeting and the right support, you can navigate these challenges effectively. Stay informed, and consider alternatives to imported materials.

Invest wisely in your home, and let MRM|AD guide you through this evolving landscape. Together, we can build your vision while addressing the realities of today’s market.