Michigan Smart Trade Alliance: Tariffs may add up to $17,500 to cost of new homes

Tariffs on lumber, steel, other materials hike already high cost of housing for Michigan families 

LANSING, Michigan — As the cost of everything continues to rise and affordable housing is reaching a crisis level in communities across the state, the Michigan Smart Trade Alliance (MISTA) is highlighting the role tariffs continue to play in driving up the cost of new homes.

Tariffs increase the cost of contruction materials including lumber, steel and aluminum, adding nearly $11,000 per unit to the cost of building a new home, on top of already record-breaking housing prices, according to estimates from the National Association of Home Builders (NAHB). An analysis from the Center for American Progress determined that tariffs would add $17,500 to the cost of a new home built today. 

Tariffs on Canada play a significant role in the skyrocketing cost of new homes because the country accounts for roughly 85% of all U.S. softwood lumber imports and nearly one-quarter of the supply in the U.S., according to the NAHB. “In effect, the tariffs act as a tax on American builders, home buyers and consumers,” the NAHB said.

Tariffs on other materials and components vital to home construction, ranging from steel and aluminum to home appliances, also contribute to the rising cost of construction. 

“Tariffs are adding thousands of dollars to the price of a new home at a time when families can least afford it,” said Mark Fisk, a spokesman for MISTA. “We need to have a bipartisan, thoughtful discussion on ways to create smart, consistent trade policies so we can help Michigan families afford homes and reduce costs so that home builders, manufacturers and small business owners can prosper and add to housing inventory across the state.” 

“It’s encouraging to see candidates for office talk about creative ways to make housing more affordable, and there is no question that more should and can be done. Michigan families are struggling to afford to pay their bills, and high housing costs only make that harder,” said John Sellek, a spokesman for MISTA. “We hope that the rising cost of new homes across Michigan prompts people to ask Congress to develop straightforward trade policies that create jobs and lower costs in Michigan.”