Canada Tariffs Could Add $14,000 to New Home Costs by 2027, Report Warns

President Donald Trump’s tariffs on Canadian imports could significantly impact the cost of home construction in the U.S., with a new report warning of a $14,000 increase per home by 2027.

According to the Canadian Chamber of Commerce, the average cost to build a home in the U.S. could rise sharply if tariffs on Canadian construction materials — such as lumber, steel, and copper — remain in place. Canada currently supplies 69% of U.S. lumber imports, 25% of imported iron and steel, and 18% of copper, all essential for construction.

While the White House insists these tariffs won’t impact American consumers, a growing number of economists and homebuilders argue otherwise. “The Administration has consistently maintained that the cost of tariffs will not be borne by American consumers,” White House spokesperson Kush Desai said. “Prices of imported goods have actually fallen this year.”

However, the National Association of Home Builders (NAHB) paints a different picture. The organization found that 60% of homebuilders reported higher costs due to tariffs. Some builders are struggling to price projects accurately amid shifting tariff policies, especially with plans for a 35% tariff on Canadian goods that don’t comply with the USMCA, effective August 1.

The Canadian Chamber of Commerce estimates that when factoring in tariffs first imposed during Trump’s initial term, total additional costs per home could reach $20,000 by 2027.

These rising costs are expected to hit hardest in states like California, Texas, and Florida, where reliance on imported building materials is high. Despite this, about 40% of builders say they’ve seen no cost impact — highlighting the uneven effects of the tariffs across the industry.

As trade tensions escalate, so do fears about worsening housing affordability, especially as home prices remain near record highs and mortgage rates stay elevated.

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