In a time where the housing market is still somewhat sluggish as people are holding off buying or selling due to economic uncertainty, renovations are often an ideal option for someone who wants a better living situation without moving.
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But will home renovations still be affordable as tariffs take effect? Experts explained what types of home renovations are likely to skyrocket if tariffs remain high.
The reciprocal tariffs announced by President Donald Trump, if implemented, are likely to have “a significant impact on the construction industry and the cost of home construction in the United States,” according to Ben Johnston, chief operating officer at Kapitus.
They’ll hit lumber and steel especially hard, most of which comes from countries like Canada, Mexico and Brazil, he pointed out.
“Given the magnitude of these tariffs, there is no question that housing will be more expensive to build, maintain and improve for Americans in the coming months,” Johnston said.
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Robert O’Sullivan, a business owner and roofing contractor at Ranch Roofing Inc., has already seen costs on new roofing materials spike. “Metal roofing costs have already jumped 60%, and contractors warn of further hikes,” he said.
He said that some roofers may offer price-lock agreements to shield clients from April’s 25% steel tariffs, though that will probably not persist past the summer of 2025.
Homeowners in dire need of a new roof can switch to asphalt shingles or synthetic membranes, he said, and should opt for sourcing domestic suppliers like IB Roof Systems.
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On the upside, he pointed out that while metal roofs’ upfront costs rose 25%, “their 50-year lifespan preserves long-term value.” Asphalt shingles usually have a shorter lifespan, so he warned against installing these “prematurely.”
“Moreover, opting for solar-integrated roofs or energy-efficient coatings can offset tariffs and can help homeowners cut down their utility bills,” he said.
HVAC units, often included in kitchen and other home renovations, are one of the most tariff-sensitive products, according to Jimmy Hiller, CEO and president of Happy Hiller.
“Even though many HVAC units are assembled in the U.S., their key components like compressors, motors, capacitors, coils, circuit boards and refrigerants are usually imported from China, Mexico or South Korea, so these tariffs always reflect the ultimate price of the appliance,” he explained.
HVAC systems often go up in price just weeks after tariffs hit since their parts move quickly through the supply chain, he warned. Thus, if you spot a deal, jump on it, otherwise it may be wise to wait for prices to drop or see if there are sales.
Since tariffs hit materials with global supply chains the hardest, this means all those little touches that go into kitchen and bathroom upgrades will likely spike, according to Ryan Nelson, founder of PropertyBuild.
“Think imported lumber, ceramic and porcelain tile, engineered wood flooring, kitchen cabinetry and stone countertops like quartz,” he said.
If your remodel relies on a lot of tile, engineered flooring or built-in cabinetry, move fast, he urged. “These projects are material-dense and price-sensitive. Prioritize them while stock is still flowing at pre-tariff prices.”
Additionally, appliances that often need replacing in these remodels, especially those from China or Europe “are extremely vulnerable,” Nelson said. “Even screws, hinges or underlayment materials can see price jumps if sourced overseas.”
Nelson has seen preliminary projections showing 10% to 25% cost increases on these materials. “That could mean a bathroom reno jumps from $20,000 to $25,000 just based on tile, cabinetry and fixtures.”
Tariffs on aluminum could increase the building costs on anything using the material, including windows, doors, gutters, exterior trim and components in appliances, according to Paul Dashevsky, co-CEO at GreatBuildz.com and MaxableSpace.com.
This could increase the costs of almost any room upgrade, or overall builds. For windows, at least, you could opt for vinyl substitutes, he said.
Wood framing doesn’t become a room until the drywall is added. Unfortunately, Dashevsky said, Mexico supplies over 70% of American drywall.
“A tariff on this material would translate directly to increased remodeling costs as this material is generally standard practice in today’s construction and doesn’t have a simple substitute,” he said.
For anyone proceeding with a renovation, be patient and flexible and expect change. “Brace yourself for change orders” and “unexpected increases” if your contractor didn’t pre-purchase all materials, Nelson said.
Also, build a buffer into your budget. “This is where your contract matters — some have escalation clauses, others don’t.” Nelson recommended a contingency fund of 10% to 15%, especially during unstable market conditions like these.
There are a variety of ways to cut costs, however, Nelson said.
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Pre-buy materials when possible, to lock in pricing and availability.
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Substitute smartly. Perhaps you swap European tile for American stone-look vinyl.
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Phase your project. Tackle critical or import-heavy parts first.
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Get multiple bids. Some contractors might have inventory bought pre-tariff and can pass savings on.
Johnston recommended a few more:
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Seek suppliers from lower tariff countries. The European Union carries a much lower tariff than China.
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Partner with others to place larger orders and obtain volume discounts. See if your contractor is able to do volume ordering.
Overall, expect to pay more for the same renovations, and retool your budget, your expectations and your finances to make sure you can afford it.
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This article originally appeared on GOBankingRates.com: 5 Home Renovations That Could Skyrocket in Price Once Tariffs Take Effect
