How tariffs on lumber and furniture continue to drive up homebuilding costs in 2025

Tariffs on imported lumber and furniture first introduced during the Trump administration are still affecting the cost of building homes across the U.S. According to Realtor.com (2025), builders say many of these tariffs remain in place and continue to push up the price of materials, slowing construction and keeping homes expensive.

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What’s Happening

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The Realtor.com report explains that while some tariffs have been reduced, import taxes on key wood and furniture products are still active. Builders say they’re paying 30–60% more for certain lumber and fixtures compared to before the tariffs began.

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Data from the National Association of Home Builders (NAHB) shows that even after prices eased slightly, lumber and paneling still cost about 25% more than in 2019. This adds roughly $18,000 to $22,000 to the cost of building a single-family home in many markets.

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Furniture import tariffs are also affecting new homeowners, who now face higher furnishing costs that add to overall housing expenses.

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Why It Matters

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These lasting tariffs make it harder and more expensive to build new housing. They:

• Increase upfront costs for developers, especially those building entry-level or affordable homes.
• Push up home prices, reducing options for first-time buyers.
• Slow down construction activity, as builders wait for costs to stabilize before starting new projects.

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Housing experts note that these challenges come on top of existing issues like land shortages, high interest rates, and labor gaps. The White House has also identified construction costs as a major obstacle to improving housing affordability nationwide.

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Timeline & Future Trends

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• 2018–2020: The Trump administration introduces tariffs on imported lumber, wood products, and some furniture to support U.S. industries.
• 2021–2023: Certain tariffs are reduced, but many key products remain affected. Builders and consumers continue to feel the impact.
• Mid-2025: Material costs remain high. NAHB data shows lumber prices still about 25% higher than pre-tariff averages.  
• Looking Ahead: Builders hope future policy changes—like tariff rollbacks or incentives for domestic production—will bring prices down. Without those, experts warn that housing affordability and production could stay under pressure.

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Quick Tip: If you’re planning to build or buy a new home, expect higher costs due to material tariffs. Ask your builder how they source lumber and fixtures, and plan for possible price increases in your budget. Locking in contracts early or exploring alternative materials can also help manage costs.

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Xavier Rodriguez is the CEO of ADU Geeks, San Diego’s leading ADU consulting and project management firm. In 2024, the company was ranked No. 1 on the San Diego Business Journal’s Fastest Growing Private Companies list in the Small Business category, achieving 594.3% revenue growth.