The construction industry relies on materials from outside the country, and recent tariffs have introduced some cost considerations for home renovation projects.
Despite these considerations, starting your renovation project now may still be the best move. At Valley Home Builders, we are here to help you navigate tariff changes and complete your renovation projects successfully.
Tariffs are government-imposed taxes on imported goods. When the U.S. sets a tariff on lumber, for example, the American importers who bring that lumber into the country pay the tariff to the government. The importers then may pass on the expense to their customers.
Historically, the U.S. has implemented tariffs to protect domestic industries or respond to trade imbalances. In 2025, we are seeing a sharp increase in these rates, with average building material tariffs rising from around 3% to as high as 22.5% for some categories like fabricated structural metal for bridges, increasing the cost of many building materials.
Some renovation projects may experience a slightly greater impact from 2025’s building material tariff increases.
Bath builder and remodeler pricing increased by 5.2% year over year in the first quarter of 2025. Plumbing fixtures, valves, and related components have seen some pricing volatility due to tariffs on metal goods and plastics.
Kitchen remodel projects have seen an average construction increase of 5.2% year over year owing to tariff cost changes. Cabinetry, appliances and imported countertops are all subject to higher tariffs, especially if they contain foreign-manufactured parts.
Domestic alternatives exist and may offer more price stability.
Additional tariffs on imported flooring products from China have led to significant increases, reducing the margins of home remodeling projects. Tariffs on imported flooring products may lead to some price adjustments.
Despite the challenges, there are effective ways to plan around the 2025 home renovation tariffs:
While tariffs may influence the cost of materials, it's important to remember that materials typically represent a relatively small percentage of the overall project cost. For example, even if flooring costs $5 per square foot and is impacted by a 10% tariff, that only adds $0.50 per square foot. On a 1,000 square foot ADU, that's just $500, which is a minimal impact on a $500,000 project – only 0.1%.
Our team at Valley Home Builders can help you navigate these considerations with expert planning, honest communication, and tailored solutions. Locking in a contract and ordering materials early is a smart move to protect yourself from potential tariff fluctuations. Now is still a smart time to start, so reach out today to schedule a consultation.
