August 13, 2018
Import tariffs imposed by the U.S. are driving up construction costs, and that’s being felt strongly by those seeking to quickly rebuild homes razed by California wildfires. The cost of materials could increase the cost of building a typical new home by as much as $20,000, according to building association leaders. And the price to rebuild could be even higher for custom-homes.
California Building Industry Association’s Dan Dunmoyer told AP News that contractors say the tariffs alone could add $8,000 to $10,000 to the lumber costs for a typical single-family home, and roughly the same for steel products used in homebuilding.
When combined with the shortage of construction labor, the increased demand is coming at a time when global trade wars, in particular between the U.S. and China, are negatively affecting wildfire victims. The problem isn’t expected to abate soon, and could be exacerbated as a result of several fires burning across the state.
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