Tariffs are pushing remodeling costs up. Here are some ways to save money.

Tariffs are causing a ripple effect in the home renovation industry, as the cost of materials continues to rise. This surge in prices is making it difficult for homeowners to justify investing in fixing up their residences. Suppliers of materials such as lumber, steel, and aluminum have already increased prices for builders, with 60% of homebuilders reporting that prices have either been raised or are set to rise in the near future, according to data from the National Association of Home Builders (NAHB) and Wells Fargo’s April 2025 Housing Market Index. This increase in prices is directly linked to the tariffs imposed by the Trump administration on the U.S.’s trade partners.

The additional costs for materials are significant, with the NAHB estimating a typical price increase of around $10,000 per home renovation project. To combat these rising prices, some builders are pre-ordering materials before the tariffs take full effect. For instance, Connecticut-based builder David Perotti, founder of Fine Home Contracting, saved a substantial amount for a client by ordering roofing shingles early, avoiding the price hike.

Most materials used in home construction in the U.S. are imported, with a significant portion coming from Canada. For example, one-quarter of the country’s lumber supply is imported from Canada and could be subject to a 15% tariff. Steel and aluminum, essential materials for building roofs, plumbing systems, electrical equipment, and HVAC systems, are also impacted by tariffs of 50%, affecting everything from coil roofing nails to metal flashing.

Given the current climate of rising material costs, Perotti advises homeowners to consider alternatives to costly renovations. Instead of investing in new appliances, opting for a fresh paint job can make a significant difference in refreshing a home’s appearance. He also suggests budgeting an additional 30% for tariff-related costs on materials, particularly those used in bathroom remodeling projects. Working with materials suppliers to lock in prices early and prioritizing exterior repairs can help homeowners navigate the challenges posed by tariffs.

As the industry continues to grapple with the impact of tariffs on material costs, it’s essential for homeowners and builders to stay informed and proactive in their approach to home renovations. By exploring cost-effective alternatives and strategic planning, it is still possible to achieve desired improvements without breaking the bank.