ORLANDO, Fla. — Greater Orlando homebuilders say potential tariffs affecting lumber could add to already rising housing costs, with Canada’s proposed retaliatory tariffs on U.S. goods scheduled to take effect Sept. 8.
Builders say higher material costs would likely be passed on to buyers in a housing market already facing pressure from inflation, interest rates, supply costs and impact fees.
“Builders are very good planners; you know we look ahead a lot and all of my guys work on a four-week look-ahead schedule, just on the job site itself,” said John Riddle, vice president of Turning Leaf Custom Homes.
Riddle said one difficult thing to plan for is rising costs, especially if tariffs significantly increase material prices.
“Most builders aren’t able to absorb a 25% or 50% new cost on materials; a tariff,” Riddle said. “So, it has to be passed on directly to the consumer — the home buyer.”
Riddle said Turning Leaf Custom Homes may be able to limit the impact because of the materials it uses.
“For us, we’re a little bit unique,” Riddle said. “We don’t use as much lumber as some of my builder colleagues use, because of our wall system; the insulated concrete form.”
Chassity Vega, CEO of the Greater Orlando Builders Association, said the housing market is already seeing cost increases tied to supplies.
“Seven percent to 15% increase just on supplies,” Vega said. “That gets added to the cost of a home. So, it just, it keeps going.”
Vega said affordability challenges are not new, but tariffs would add another hurdle for builders and buyers.
“You know we’re fighting the inflation, we’re fighting the interest rates, we’re fighting the supply costs, we’re fighting the governments on the impact fees, and you know everything that it takes to bring a home into a community,” Vega said.
Builders say that means their bottom lines are being reduced while costs to consumers continue to rise.
At this time, there have been no additional conversations around negotiations between the U.S. and Canada.