How rising tariffs could affect the cost of your home renovation project

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More homeowners have opted to take on home renovations to improve their current space amid rising home prices and elevated mortgage rates. But the cost of doing so may also be on the rise as a result of President Donald Trump's tariff policies.

The National Association of Home Builders estimated that 7% — or about $14 billion — of the $204 billion worth of goods used in the construction of new multifamily and single-family homes in 2024 were imported from outside the United States.

But with 10% universal tariffs on imports from all foreign countries, as well as the potential for reciprocal tariffs on certain nations, the association projects that the cost of building materials for a single-family home will increase by $7,500 to $10,000.

Lumber from Canada, for example, makes up about 85% of all softwood lumber imports in the United States and represents about 25% of the United States' total supply, the association said. There is currently a 14.5% tariff imposed on Canada's lumber, with the potential for that rate to increase later this year. Materials like steel and aluminum — primarily imported from Canada and Mexico, as well as allies in Asia and Europe — are also currently subject to a 25% tariff.

'No escaping higher tariffs'

Similarly, China now faces tariffs up to 245% on imports to the United States. The country supplies things like plastic window components, glass coatings and key parts for HVAC, plumbing and electrical systems.

In terms of renovations, this could cost some homeowners more when it comes to getting a new roof, upgrading internal home systems or remodeling spaces like kitchens and bathrooms, among other things.

With that, Angi's 2024 State of Home Spending Report found that 93% of homeowners have house projects planned for 2025. So, with the rise in material costs, is it worth it for homeowners to do their own projects to save some money, rather than hiring a professional?

"One of the main things to consider is that supplies and materials are going to affect DIYers, as well as contractors. So there's really no escaping higher tariffs," said NerdWallet home expert Holden Lewis. "If the price of lumber goes up, it's going to affect you when you go to Home Depot. But it's also going to affect a contractor who might be buying lumber in bulk. So I just don't know if there's a way of escaping these higher tariffs."

Tip: Use a home renovation calculator before committing to project

Before anything, Lewis said, it's important for homeowners to consider what the overall cost will be for a certain project and how that fits into their budget.

He recommends consulting online home renovation calculators — available on platforms such as NerdWallet, Fixr, Realtor.com or PNC Bank — and getting several estimates from local contractors. From there, you can determine whether it's worth hiring a contractor or doing the project yourself.

Generally, Lewis suggests always hiring a professional when it comes to major things like roof replacements, central air changes and upgrades to plumbing or electrical systems, but for things like painting, refinishing cabinets or other minor aesthetic projects, it's at your discretion whether to take on the hassle.

"The National Association of Home Builders says that these higher tariffs will increase the cost of building a house by as much as $10,000. Well, that's a whole lot of materials. And when you're doing a renovation, you're probably buying a lot less material than that," Lewis said. "So the tariffs might not be horrifically expensive for someone who is doing a DIY project or having a professional do a minor project."

Maddie McGay is the real estate reporter for NorthJersey.com and The Record, covering all things worth celebrating about living in North Jersey. Find her on Instagram @maddiemcgay, on X @maddiemcgayy, and sign up for her North Jersey Living newsletter. Do you have a tip, trend or terrific house she should know about? Email her at MMcGay@gannett.com.