Tariffs on key home-building materials — particularly softwood lumber — could significantly increase the cost of new homes in the United States. With the country already facing a housing shortage and widespread affordability challenges for many, new tariffs could price out over 100,000 more prospective home buyers. Home builders reported in April 2025 that existing tariffs had already increased costs by $10,900 per home, according to the NAHB)/Wells Fargo Housing Market Index (HMI). …The Trump administration has opened an investigation into whether imports of lumber and related products threaten U.S. national security — an inquiry that could result in tariffs. New duties on Canadian softwood lumber, the primary source of U.S. imports, could lead home construction costs to surge. …More than 70% of lime and gypsum, critical for drywall and plaster, are imported from Mexico. The Trump administration has threatened to impose a 25% tariff on Mexican goods.