Tariffs have created uncertainty this year, and we know you're wondering: "How will this affect my remodel costs?" As a design-build firm, we see material prices daily. We talk with Portland homeowners every day about remodel budgets and what drives those costs up or down. Here's what tariffs actually mean for your home remodeling project. Key Takeaways:
We're not going to cover the legal battles over the tariffs - after all, we're not a news source, we're a home remodeling company. But, here are some of the recent updates that could impact your remodel:
Because we work with Pacific Northwest suppliers, many of our materials face fewer overseas tariffs—especially compared to national chain remodelers. If you're concerned about the cost of your home remodel get a baseline with one of our cost calculators, or reach out to our team to learn more about how your specific project might be affected by these trade developments. What Remodeling Materials are Affected by 2025 Tariffs?The materials most impacted by tariffs are those imported from China, Canada, and Mexico, which have the highest tariffs placed on their goods, with the following products experiencing the largest price increases:
Here in the Pacific Northwest, we're not predicting price increases in:
The type of remodel you're considering, and the materials used for that project, will have the biggest impact on the final cost of your remodel. To explore this a bit further, we dove into three different projects to explain how tariffs will impact total project cost. We put together a video walkthrough of all this information if you'd prefer to watch instead of read. Otherwise, scroll down for specific project examples.
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How Much Will Tariffs Increase Remodeling Costs in Portland?We've examined three recent projects to quantify the exact tariff impact. We looked at which products would likely be impacted by tariffs, and then did the math based on 10%, 25% and 50% tariffs to calculate how much more the project might cost. Case Study 1: Kitchen RemodelThis kitchen remodel included removing a wall, installing new flooring throughout, and completely remodeling the kitchen. Total project budget: $230,000 Tariff-sensitive items: $16,914 (7% of total budget) Potential tariff impact:
Case Study 2: Basement RemodelThis basement remodel required digging out the space beneath the home to increase the ceiling height, pouring a new concrete foundation, and completely finishing the space. Total project budget: $326,000 Tariff-sensitive materials: $8,891 (2.7% of total budget) Potential tariff impact:
Case Study 3: Main Floor AdditionThe goal of this home addition was to increase the amount of livable space of the home, including an additional bathroom. The main cost of the project will be building materials like siding, windows, and concrete. Total project budget: $350,000 Tariff-sensitive materials: $16,000 (4.6% of total budget) Potential tariff impact:
Should You Delay Your Remodel Because of Tariffs?The honest answer: probably not. Here's why. Tariffs aren't going away soon. Based on current policy, expect them to stay in place for at least the next three years. They could decrease, but they're just as likely to increase. Waiting might cost you more. We're already seeing early signs of inflation. As tariffs work through the supply chain over the next 6-12 months, material costs will likely rise further. Your family's needs matter most. A dysfunctional kitchen costs you daily frustration and potentially home value. Expert Advice for Navigating Rising Material Costs in 2025When deciding whether to delay your project, it's important to consider several additional factors beyond just the tariff impact: 1. The Cost of WaitingHistorically, construction costs have increased by 3-5% annually regardless of tariffs. Delaying your project by a year could mean facing higher labor costs and potential material price increases that exceed the tariff impact. In the Pacific Northwest specifically, our tight labor market continues to drive construction costs upward. 2. Interest Rate ConsiderationsIf you're financing your remodel, current interest rates should factor into your decision. While rates have stabilized recently, they remain unpredictable. Securing financing now might be more advantageous than waiting for potential material savings that may never materialize. 3. Regional Supply Chain AdvantagesHere in the Pacific Northwest, we benefit from strong domestic supply chains for key materials like Douglas Fir lumber, locally-produced concrete, and regional manufacturing. Many of our vendors have already diversified their supply chains in response to earlier tariff waves, providing some insulation from the most severe price impacts. 4. Balancing Budget and TimelineFor time-sensitive renovations (like preparing your home for a new family member or addressing structural issues), the value of completing your project on schedule likely outweighs the modest cost increases from tariffs. However, purely discretionary projects with flexible timelines might benefit from strategic scheduling. 5. Working with Experienced ProfessionalsOur analysis shows that the design phase provides the greatest opportunity to mitigate tariff impacts. Partnering with a design-build firm that understands both the aesthetic and cost implications of material selections can help you navigate these challenges without compromising your vision. The bottom line: For most homeowners, the relatively minor impact of tariffs (typically 0.5-3.5% of total project cost) doesn't justify postponing necessary or desired renovations, especially when weighed against ongoing inflation, rising labor costs, and the tangible benefits of enjoying your improved living space sooner rather than later. How Can You Mitigate the Impact of Tariffs on Your Remodeling Project?As a design-build firm, our integrated approach means we can make smart design choices that help offset tariff impacts through every phase of your project:
As a leading Design Build firm in Portland, Oregon we've helped thousands of homeowners remodel their homes. If you have questions about how tariffs will impact your remodel, reach out to our team. We'd be happy to discuss your remodel and the implications tariffs have on your project's cost. |