Homebuilders say tariffs will add nearly $11,000 in costs to each new home

Homebuilders say that President Donald Trump's tariffs will add nearly $11,000 in costs to the average new home, as builder sentiment remained low this month despite a modest decline in mortgage rates.

Builder confidence in the market for newly built single-family homes was at 40 in April, creeping up 1 point from March, according to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI) released on Wednesday. A reading of less than 50 indicates negative sentiment.

When asked about the impact of tariffs on their business, 60% of builders reported their suppliers have already increased or announced increases in material prices due to tariffs. More here: (Source)

The S/M Take: 

Reality has settled in. Whether Trump’s tariffs end up high or low, there will be an impact on input costs. The turmoil has dampened an already stifled industry; single-family starts dropped 14.2% in March.

At Simon/Myers, it’s our job to help brands succeed, even when friction is high. So consider this: We already know that pent-up demand is high, and it will only intensify. When the dam breaks, where will you be? Reduce your marketing spend now, and you’ll sacrifice share to competitors who stayed on the offensive.

So rather than cut, get strategic. You have owned channels – use them! Optimize them with webinars that deliver CEUs and drive traffic.

What is your Pro strategy? These purchase influencers are your linchpin in tough times. Invest in dedicated customer service tailored to them, and help with leads, referrals, and pro-only discounts. Engender their loyalty in lean times, and they will reward you when normalcy returns.

Want more guidance? Reach out directly to jmyers@simon-myers.com and we’ll set a time to chat. Meanwhile, explore more “tariff time” opportunities in this revealing report by the Farnsworth Group:

• Pros are serious about doing their research
• Pros remain open to trying new brands
• An omni-channel approach is vital

‘It’s scaring the crap out of me’: How Trump’s tariffs are colliding with rebuilding fire-ravaged L.A.

Uncertainty about which imports will be socked with new tariffs and when they’ll go into effect has thrown a cloud over home builders and other real estate developers trying to pay for new construction throughout Southern California, including neighborhoods scorched by the January wildfires.

Many builders are trying to budget for rising costs but are frustrated because they don’t know what construction materials and appliances, such as stoves and air conditioners, will cost in the months ahead.

Questions surrounding the tariffs are already forcing contractors to make quick purchasing decisions, especially for windows, doors, plumbing and lighting fixtures and other materials made or manufactured in China, which are subject to duties of 145%. Prices for their customers are already going up. More here: (Source)

The S/M Take: 

Talk about rubbing salt in the wound. But let’s set the frustration aside for a moment and consider the branding opportunities here. Is your construction brand in a position to take a philanthropic footing in this crisis, and speed materials to the fire zone while reaping positive PR? Do you make a construction product that’s uniquely suited to fire resistance, i.e. “hardened homes”? This might be your moment to take the lead and trade profit for exposure. The SoCal devastation was – and remains – a uniquely high-profile moment in America. The helpers will be remembered positively.

Top 15 global home trends that might disappear under U.S. tariffs

Exotic hardwood flooring has been a popular choice for homeowners seeking elegance and durability. However, with the imposition of U.S. tariffs, the cost of importing these luxurious materials has skyrocketed. This has led many homeowners to reconsider their flooring options, opting for more affordable alternatives.

The question remains: will domestic alternatives be able to capture the same allure and charm? More here: (Source)

The S/M Take: 

Trends are plenty elusive already. Who would have thought that the disruption of global trade could become a de facto tastemaker? Click through the slideshow and see what may be forced from vogue over the next few months.