MENTOR — Rising lumber tariffs could increase the cost of building a new home, but local builders say smart budgeting and material swaps can help homeowners keep costs down.
The National Association of Homebuilders estimates that $204 billion was spent on constructing new multi-family and single-family homes in 2024. Of that, $14 billion worth of materials were imported from outside the U.S., raising concerns about the impact of tariffs on construction prices.
Josh Edgell, owner of JEMM Construction, said that while the industry has seen some price increases, he has been able to adjust.
“You know we’ve had some talks of increases. We’ve seen a little bit, but we’ve been able to change some materials,” Edgell said.
“Let’s not forget… [tariffs] are a factor, not a crisis,” he said.
Lumber is a major component in home construction, and about 30% of the lumber used in the U.S. comes from Canada. The uncertainty surrounding timber and steel prices makes it difficult to predict how much homebuyers will ultimately pay.
“It’s so difficult because we don’t actually know what the price of timber or steel might be. When might be a good time to buy a home?” Michael Goldberg, a Department of Design Innovation professor at the Weatherhead School of Management at Case Western Reserve University, said.
Edgell suggests several cost-saving strategies for those looking to build a home:
- Rethink room layouts – Consider a more functional kitchen space instead of a traditional dining room.
- Maximize design – High ceilings can create the illusion of more space without increasing square footage.
- Explore material swaps – Builders can often find alternative materials that provide the same quality at a lower cost.
“Frankly, sometimes our buyers are going to have the benefit here because we’re going to get creative, and we’re going to work with our vendors, and we’re going to push on prices,” Edgell said.
Despite rising costs, Edgell and other builders are shifting to more American-made materials to help stabilize pricing for future projects.
