Homebuilders report that tariffs are already adding nearly $102K to the cost of a new home, a trend that recalls the impact of Trump-era trade policies that targeted key construction material imports from countries like China and Canada.
To estimate the impact, Evernest analyzed average construction costs across U.S. states based on a standard 2,200-square-foot home. The study focused on four core materials most likely to be affected by tariffs: softwood lumber, steel and aluminum, copper, and drywall. Each material’s share within the total construction material cost was estimated using NAHB benchmarks. The result was a calculated 15.92% increase in material costs after tariffs were implied, which was then scaled to show how much extra each state would likely pay on average—excluding labor, permits, or mortgage rates.
*For the full research with detailed calculations and methodology please follow this link
Hawaii ranks first among all U.S. states for the estimated increase of $102.4K in housing costs due to construction tariffs. With a pre-tariff baseline cost of $990,K the island state is projected to face an added $102.4K, bringing the total construction price to $1M. Materials such as lumber, steel and aluminium, copper and gypsum will have the highest estimated cost increase reaching $339.07, which will have the most impact on the overall housing costs.
California is expected to see an increase of $68.2K, the second-highest among all states. While its baseline construction cost of $660K is lower than Hawaii’s, the state’s significant dependence on tariffed materials, especially lumber, drives its total cost to $728.2K. The final cost per square foot after the tariff adjustment rises to $331.04.
Massachusetts and New York come in third and fourth, each facing a $62.6K increase in average construction costs, with new home prices rising from $605K to $667.6K. Both states share identical square foot pricing at $275 and comparable material cost structures, which explains the matching tariff impact. The key difference lies in population number, with New York serving more than 19 million residents, while Massachusetts having just over 7 million.
New Jersey ranks fifth with an expected increase of $54.6K in construction costs, moving from a pre-tariff estimate of $528K to a total of $582.6K. The state’s construction material cost is estimated to rise to $180.84 per square foot, increasing the effect of tariffs on overall pricing.
In sixth, Alaska is projected to see a $51.2K increase in housing construction costs due to tariffs, lifting the total from $495K to $546.2K. Estimated material costs are expected to grow to $169.53 per square foot, making materials a major factor in the final construction price.
Connecticut and Rhode Island rank seventh and eighth, each facing a projected housing cost increase of $48.9K. Both states share the same estimated construction material increase of $162.00, reflecting nearly identical building practices. The only meaningful difference is scale—Connecticut has a population of over 3.6 million, while Rhode Island has just over 1 million.
Colorado and Maine are each projected to see a $45.5K increase in housing construction costs, moving from $440K to $485.5K. Both states share the same estimated construction material cost of $150.70 per square foot, pointing to similar cost structures and material use. The primary difference is population—Colorado has nearly 5.9 million residents, compared to 1.4 million in Maine.
A spokesperson from Evernest commented on the study: “Tariffs on building materials are pushing up the base price of new homes in every state. For younger buyers, that extra $30,000 is a real barrier, and not just a line item. The data shows that these policies affect real affordability, especially in places where incomes haven’t kept pace with construction costs.”
Post courtesy https://www.evernest.co/
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