Tariffs Add Thousands to New Homes. A New Bill Aims to Cut That Cost.
Small builders are paying the most, and that matters in Boston's suburbs
Bob Wiltse, REALTOR®
Research & Writing Assistant: Claude.ai
September 30, 2026
If you are shopping for a new home, tariffs are part of the price. Tariffs are taxes on goods imported from other countries, like Canadian lumber or imported steel. Here is what drives new construction costs Massachusetts buyers face, what the Trump administration and Congress are doing about them, and why small local builders feel it most.
How much tariffs add to a new home
Builders estimate recent tariffs add about $10,900 per home, NAHB says. Steel and aluminum have a 50% tariff. Kitchen cabinets and vanities have 25% until January 1, 2027.
Prices show it. Softwood lumber was up 17.3% from a year earlier in July, and building materials overall were up 5%, the biggest yearly jump since December 2022, NAHB reported August 18.
What the Trump Administration has done to cut costs
On March 13, President Trump signed two housing orders.
Less red tape. The first order directs federal agencies to ease wetlands and stormwater rules, speed up environmental and historic reviews, and roll back some energy code rules, the White House said. It cites a White House estimate that green energy mandates can add $30,000 or more to a home.
Easier loans for small builders. The second order directs bank regulators to rewrite construction loan guidance, expand financing for small builders, and update appraisal rules, NAHB reported. NAHB backs both orders.
A lumber duty cut. This summer the Commerce Department cut duties on Canadian lumber. With a separate 10% tariff, the total dropped from about 45% to about 35%, Treefrog reported.
One step lands right here. In August, EPA proposed simpler stormwater reporting for building sites. EPA runs that permit itself in just three states, and Massachusetts is one, Reason reported September 29. EPA expects to finish the change before February 2027.
Most of this is still proposals and guidance, not final rules, Reason notes. The administration also added tariffs. A 50% tariff on Canadian goods such as cement and plywood started August 19, NAHB said.
A bill that targets tariffs
On September 17, Rep. Nanette Barragán filed the Housing Tariff Exclusion Act (H.R. 10416), NAHB reported. It would let builders ask the Commerce Department to exempt building materials from tariffs, with answers on common products in 15 days. A Senate version comes from Sens. Jacky Rosen and Chris Coons. The bill has not passed.
Small builders pay more
In an NAHB survey, builders who start 5 or fewer homes a year saw a 9.1% median rise in material costs over the past year. Builders who start 100 or more saw just 1.8%, NAHB reported August 26. Big builders can stock up and sign long supply deals. Small builders mostly cannot.
For every $100,000 of materials, a small builder paid about $9,100 more than a year ago. A big builder paid about $1,800 more.
New construction costs in Massachusetts vs. the nation and the suburbs
Nationally: The median new home sold for $393,700 in August, First Trust reported, based on Census data. $10,900 is about 2.8% of that.
Massachusetts: The Boston metro median single-family price is about $795,000, Banker & Tradesman reported. $10,900 is about 1.4% of that.
Middlesex County suburbs: No one publishes a tariff cost for the county, so I pulled MLS PIN data. In the last six months, 123 new single-family homes built in 2026 sold in Middlesex County.
Median: $1,790,000, 3,789 square feet, $470 per square foot. Half had an offer within 12 days.
Average: $1,952,521, 3,945 square feet, $487 per square foot.
Buyers paid about 98% of the list price.
$10,900 is about 0.6% of the county median, or about 23 square feet of new home. Prices vary by town. In Newton, 8 new homes averaged $3,892,500. In Lexington, 6 had a median of $3,352,500. In Townsend, 4 had a median of $617,500.
The real hit on a big suburban home is likely larger than $10,900, since these homes use more lumber and cabinets. Many teardown homes in Newton, Lexington, and Winchester are built by small builders, who pay about 9.1% more. The small-builder loan changes, if regulators follow through, could likely help them most.
Have questions about a new home in Massachusetts? Reach out to Bob Wiltse, REALTOR®, eXp Realty. 978-793-1719 | bob@bobwiltse.com | bobwiltse.com
Sources
1. NAHB, "How Tariffs Impact the Home Building Industry," accessed September 30, 2026. https://www.nahb.org/advocacy/top-priorities/building-materials-trade-policy/how-tariffs-impact-the-home-building-industry
2. NAHB, "Building Material Prices Show Growth In July," August 18, 2026. https://www.nahb.org/blog/2026/08/july-material-prices
3. The White House, "Fact Sheet: President Donald J. Trump Removes Regulatory Barriers to Affordable Home Construction," March 13, 2026. https://www.whitehouse.gov/fact-sheets/2026/03/fact-sheet-president-donald-j-trump-removes-regulatory-barriers-to-affordable-home-construction
4. NAHB, "Trump's Executive Orders on Housing Would Ease Affordability Crisis," March 2026. https://www.nahb.org/blog/2026/03/trump-executive-orders-would-ease-affordability-crisis
5. Treefrog, "U.S. reduces duty rates on Canadian softwood but levies still hefty," 2026. https://treefrogcreative.ca/u-s-reduces-duty-rates-on-canadian-softwood-but-levies-still-hefty/
6. Reason, "Whatever happened to Trump's housing affordability executive order?" September 29, 2026. https://reason.com/2026/09/29/whatever-happened-to-trumps-housing-affordability-executive-order/
7. NAHB, "Latest Tariff Actions Add Uncertainty to Housing Market," July 2026. https://www.nahb.org/blog/2026/07/tariff-uncertainty
8. NAHB, "House Bill Seeks Tariff Relief for Building Materials," September 17, 2026. https://www.nahb.org/blog/2026/09/tariff-relief-building-materials
9. NAHB, "Smaller Builders Report Higher Material Costs," August 26, 2026. https://www.nahb.org/blog/2026/08/building-material-prices-increasing-for-home-builders
10. First Trust, "New single-family home sales increased 6.4% in August," September 24, 2026. https://www.ftportfolios.com/Commentary/EconomicResearch/2026/9/24/new-single-family-home-sales-increased-6.4percent-in-august
11. Banker & Tradesman, "Why Real Estate Groups Are Driving a Glass House Around Boston," September 23, 2026. https://bankerandtradesman.com/why-real-estate-groups-are-driving-a-glass-house-around-boston/
12. MLS Property Information Network (MLS PIN), Listing Statistics (average and median): single-family homes, year built 2026, sold in the last six months, Middlesex County towns, compiled by Bob Wiltse, September 30, 2026.
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