As a leading national CPA firm serving the construction sector throughout the New York Metro market, we are closely monitoring the evolving trade policies and their impact on construction project costs. Recent tariffs imposed on materials imported into the United States have already driven up the cost of new home construction in New York Metro and across the nation.
The Impact of Tariffs on Construction in The New York Metro Market
Data from the Canadian Chamber of Commerce’s Business Data Lab demonstrates that these trade barriers, while politically positioned as tools of negotiation, are having direct financial consequences for American builders and buyers. The increased costs are not only affecting Canadian exporters but are materially affecting affordability and budget certainty for our construction industry clients.
Between 2018 and 2024, tariffs and duties on imported construction materials have contributed an additional $6,000 to the cost of building a single-family home in the U.S. Projections show that if current tariffs and duties remain in effect, this number could rise by another $14,000 through 2027. In the New York Metro area—where costs are already elevated—these increases could place further pressure on developers and contractors, challenging margins, and affecting the overall feasibility of projects.
The reliance on imported construction materials remains significant. For example, 69% of all lumber imported into the United States is sourced from Canada. Canada is also a major supplier of other essential construction inputs, including 25% of imported iron and steel and 18% of imported refined copper. While the immediate impact of recent tariffs has been somewhat tempered by existing inventories and earlier purchases, the potential for rapid increases in material costs grows as these supplies diminish and as new tariffs take effect.
Trade policy actions over recent months have been inconsistent, with tariffs being imposed, delayed, or temporarily lifted on various goods from Canada and other trading partners. These policy shifts make cost forecasting and supply chain planning increasingly complex for our construction industry clients in the New York Metro market.
CBIZ Recommendations
Given these circumstances, we recommend:
- Continuously monitor material costs and update contract terms as needed,
- Consider diversified sourcing strategies and maintain buffer inventories when feasible,
- Factor potential price volatility into project budgeting and bidding, and
- Work closely with our tax and advisory teams to assess the financial and operational impacts of changing trade policies.
Our firm is committed to providing timely insights and strategies to help clients adapt and thrive in this shifting landscape.
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