US Home Building Slows on Soaring Costs for Materials and Labor

By Paul Berger
The Wall Street Journal
November 2, 2026
Category: Finance & Economics
Region: United States

Tariffs have raised the prices of materials ranging from drywall to windows to lumber. President Trump’s 50% tariff on imports of aluminum, for example, which is used for siding, window frames and gutters, has combined with higher energy bills to push up prices for the material dramatically.  Home builders also face rising costs for distribution, storage and transportation of materials and tools. Soaring diesel prices have raised costs for trucking firms delivering plywood, concrete and floorboards to jobsites. Wholesalers and retailers are lifting prices because of rising expenses tied to tariffs and energy inflation. Labor is getting harder to find and more expensive too. Many skilled tradespeople are opting to work on lucrative data-center projects rather than on homes. Meanwhile, the Trump administration’s crackdown on immigration and sharp increase in deportations have devastated home builders’ workforces in some parts of the country. [to access the full story a WSJ subscription is required]

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