Tariff's affecting home construction companies

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TWIN FALLS, Idaho (KMVT/KSVT) - Building a new home can be stressful for many families, especially when unexpected costs pop up. However tariff's could put that hammer on a construction budget.

According to the National Association of Home Builders, on a tariff list of 6,000 items, more than 450 of them are commonly used in a residential construction and remodeling.

Wolverton Homes in Twin Falls said they are feeling the affects of the tariff's that were put in place in the past year.

"We’ve seen prices increase come in and the first ones that really hit us were the lumber increases coming out of Canada. We saw about up to a 60 percent increase in just some of the products," said Rui Gomes, a sales and marketing manager with Wolverton Homes.

As far as the tariff's from China, Gomes said they are seeing prices affected with flooring, counter tops and the heating, ventilation and air conditioning systems.

"Across the board a little bit of everything in a home is getting hit with price increases," Gomes said.

He added that they've had seven increases in carpet and flooring alone since Jan 1.

With materials increasing in price, the prices of homes are going up along with the taxes.

"It’s a real cost and we have to adjust to keep up with all the costs. It makes it difficult and it’s a hard conversation with customers, things are getting more expensive and we’re moving in that direction," he said.

Gomes said every time they sit down and talk with potential buyers, tariff's make the conversation along with interest rates.

"Try to keep them informed because we don’t like to have any surprises at the end for them," he said.

Although prices are increasing on homes, Gomes has a positive outlook.

"We have a lot of industry coming into town, and with time, I think the tariff's will come into play and be positive. It's just that short term that everybody's getting affected on and hopefully we'll see a benefit of it at the end," he said.

Gomes said new home construction is still in demand and estimates Twin Falls to continue growing for the next three or four years.

"Everyone’s still moving to the valley, the valley is where everybody wants to be," he said.



 
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