Trump’s tariffs push up construction costs for US developers

Date:

Share post:


Some developers report steel prices up by as much as 20%, forcing them to adjust project budgets or pass costs on to clients.

On CEO told Business Insider his New Jersey warehouse project has seen steel costs climb by 8-10%, adding $2 million to expenses.

Another developer working on a $100 million warehouse near Washington, DC, avoided a 15% steel price hike by locking in early pricing but still expects overall construction costs to rise by about 10% due to higher prices on rebar, insulation, and roofing.

The tariffs, which took effect on March 12 and include a 25% duty on foreign steel and aluminum, are also affecting renovations.

Richard Jantz from Cushman & Wakefield said a Manhattan office tenant recently put a $20 million renovation on hold due to price increases on materials like ceiling tiles and lighting systems, which often rely on imported components.

While the real estate industry initially expected growth in 2025, Trump’s unpredictable trade policies have created uncertainty.

A sudden announcement of a 50% tariff on Canadian steel on March 11—later withdrawn the same day—has left developers wary. Many are now waiting to see if further policy changes will impact costs before moving ahead with new projects.



Source link

Nicole Lambert
Nicole Lambert
Nicole Lamber is a news writer for LinkDaddy News. She writes about arts, entertainment, lifestyle, and home news. Nicole has been a journalist for years and loves to write about what's going on in the world.

Recent posts

Related articles

Are you winning your week?

I like to call them in our business ‘playing better percentages’.  Many often wonder as an organisation why...

David Coombes opens third office in Boorowa

David Coombes, director and selling principal of Ray White Young, Harden and now Boorowa, recently celebrated 30...

Next step in business leads to alignment with RE/MAX

The office, located in Underwood in Brisbane’s south, is the third new office to open this year...

New York’s Woolworth mansion drops price to just under US$50 Million

The seven-storey, 20,000-square-foot (1,858 sqm) home at 4 East 80th Street was originally listed for $90 million...

Ellen DeGeneres lists one of her last US homes following UK move

The two-bedroom, two-bathroom home, purchased for $2.9 million (approx. $4.4 million AUD) in 2020, is described as...

Trillions in real estate at risk from natural disasters

According to analysis from Zillow, US homes with major wind risk are worth at least US$17 trillion...

LJ Hooker Partners with Ailo to Boost Property Management Efficiency

Property managers at high profile LJ Hooker offices are reporting dramatically reduced administrative workloads, sub-1 per cent...

The Contrarian Hook: What Real Estate Agents Can Learn From Ryan Reynolds and Alex Hormozi

Through his contrarian advertising approach, Ryan Reynolds helped Mint Mobile gain over 2 million customers. This success wasn’t...