The construction industry relies on materials from outside the country, and the recent tariff impact on home renovation costs has been substantial.
Despite the increasing costs, 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 to help you complete your renovation projects.
Understanding Tariffs and Their Impact on Construction
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.
Most Affected Renovation Projects
Some renovation projects have been hit harder than others by 2025’s building material tariff increases.
Bathroom Renovations
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 also seen pricing volatility due to expanded tariffs on metal goods and plastics.
Kitchen Remodels
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, but they may still be impacted by raw material tariffs or increased demand.
Flooring Projects
Additional tariffs on imported flooring products from China have led to significant increases, reducing the margins of home remodeling projects.
How to Prepare for and Mitigate Rising Costs
Despite the challenges, there are ways to plan around the 2025 home renovation tariffs:
- Request detailed, itemized quotes early to understand your total costs.
- Consider alternative materials or comparison shop domestic suppliers with lower tariff exposure.
- Lock in materials early to avoid additional price hikes.
- Plan ahead for longer projects that could be impacted by supply chain and tariff changes.
- Explore financing options to spread out rising costs over time.
- Work closely with your contractor to identify smart substitutions through value engineering.
While tariffs are increasing renovation costs, delaying your project could lead to even higher expenses down the road, due to inflation. Our team at Valley Home Builders can help you navigate these challenges with expert planning, honest communication and tailored solutions. Now is still a smart time to start, so reach out today to schedule a consultation.
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