NASHVILLE, Tenn. — The imposition of President Donald Trump’s tariffs could soon lead to higher prices for homebuyers in Middle Tennessee, although local homebuilders are still assessing the full impact. The National Association of Home Builders (NAHB) has estimated that tariffs on imported materials could increase the cost of building a new single-family home by as much as $7,500 to $10,000.
According to the NAHB, approximately 7% of all materials used in new residential construction are sourced from outside the United States. Softwood lumber, which is primarily imported from Canada, and gypsum products, largely imported from Mexico, are among the most affected materials. In 2024, the U.S. imported about $5.9 billion in sawmill and wood products from Canada, while nearly three-quarters of drywall materials came from Mexico.
These tariffs could drive up costs for builders who rely on these foreign-sourced materials. However, Trey Lewis, vice president of Ole South Properties, one of Tennessee’s largest homebuilders, explained that the company would not immediately pass the higher costs onto homebuyers. Instead, Ole South Properties plans to make adjustments by building smaller homes to offset the financial impact.
“In our market in Middle Tennessee, the consumer is at their limit,” said Lewis. “Until they have relief in the ability to afford more, they can’t pay any more. We’re in the business of building homes. The alternative is you’re going to slow down. That will cost us more than not raising prices at this time.”
The NAHB’s report highlights that the U.S. imports around 30% of its softwood lumber, as domestic production can’t keep up with demand. Despite the expected increase in material costs, Lewis and other builders remain optimistic that the price hike could be temporary. They are hopeful that states like Maine, Washington, and Oregon—major lumber producers—might increase production to meet the demand and alleviate the pressure caused by tariffs.
For now, builders and consumers alike are bracing for the potential changes, though many hope the situation will stabilize as domestic production ramps up. While it’s unclear how long the effects will last, it’s evident that the housing market in Middle Tennessee may face some challenges in the coming months.
