Building or renovating a home has never been cheap or easy. But these days, planning to do so will likely be more expensive—and more stressful.
As the Trump administration rolls out tariffs on imported goods from Canada, Mexico, and China, which includes everything from softwood lumber to kitchen appliances, homebuyers and renovators will likely have to prepare for increased costs. That’s because the tariff is ultimately paid for by the consumer. And just how much money should be added to the budget? That’s not clear for now, but the National Association of Home Builders suggests that it could be between $7,500 and $10,000. Deep breaths.
“Regardless of what’s happening around you, there are always unforeseen costs, challenges, and adjustments that need to be made,” says Malorie Goldberg, partner at Noa Blake Design. “As long as you are flexible, there will be a way to get to the end goal.”
While no one knows exactly how these tariffs will play out, you can still follow through on your plans with, well, even more planning. “Even with rising costs, a well-designed home is always a worthwhile investment,” Linette Dai, founder and principal designer of a namesake firm. “Thoughtful choices in layout, materials, and craftsmanship can create a home that not only looks beautiful but also stands the test of time.” Here are their five recommendations for future-proofing your project.
Know Your Numbers
Carrying out a large-scale new build or renovation requires a lot of moving parts, and the best way to keep track of everything is to know your numbers. Once you have clear guidelines around your budget, you can then figure out what to prioritize. This is even more important when tariffs are in the mix.
“Strategic planning is key,” Dai says. “Think quality over quantity, and focus on the areas that really matter rather than spreading your budget too thin.”
But keep your wits about you: All budgets should come with contingency plans, shifting global economics aside. “We always advise clients to plan to go over budget by 20 to 25 percent overall, and I believe a good portion of these [tariffs] will simply contribute to that same range,” Goldberg says. “Regardless of what the current challenges are, you will always have to make concessions and adjustments during the home building process, the tariffs just happen to be the current complication.”
Hire a Designer
Taking on a new build or renovation yourself may seem like the best way to save money in the short term, but over the course of the project, it could cost you. “Work with a designer from the start,” Dai says. A professional will have a better idea of how much materials cost, which alternatives to use just in case, and how all of your choices will come together cohesively. And while you work with a designer, be as transparent as possible with your budget, expectations, and tastes.
“Communicate your priorities and be open to creative solutions, such as repurposing existing materials or finding high-impact, budget-friendly swaps,” Dai says. Goldberg agrees. “Everything is about balance,” she says. “If your team knows what is most and least important to you, they can work together to find solutions.”
Hire Locals
In addition to a designer, you’ll also want to keep your network as close to your home as possible. “Sourcing locally-made materials and working with artisans nearby can help mitigate tariff-related cost increases,” Dai says. Ask your general contractor or search for recommendations around nearby furniture builders, and see if there are artists close by who may be interested in commissioning work. Other than being cost-effective, this route also helps build community.
Be Realistic About Rooms
Tariffs aside, there are rooms in a home that will always be pricier than others—so you’ll have to be realistic about where to invest the most funds. “Kitchens and bathrooms are typically the most expensive due to plumbing, electrical work, and high-cost finishes like stone countertops and custom cabinetry,” she says. “Living rooms and bedrooms tend to be more budget-friendly, since they rely primarily on paint and furnishings rather than structural changes. However, adding millwork or specialty finishes can increase costs in any space.”
When considering how tariffs will make these rooms more expensive, Goldberg thinks kitchens will see an uptick. “Outside of basic construction materials, appliances will also be largely affected, making kitchens one of the more impacted renovations,” she notes. “So changing decorative elements like tile and stone, which are often sourced domestically, updating your color palette through paint and stains, and modernizing floor plans and furniture can be enough to give you an entirely new look and feel.” One more option to consider? “Choose prefabricated elements rather than fully custom cabinetry to save on labor costs,” Dai says.
Plan for Phases
One way to make the most of every dollar is to conduct your renovation in phases. Maybe you decide to do the most expensive rooms first, then the less expensive ones later, or vice versa. “This allows for flexibility in sourcing materials at the best possible price points,” Dai says. If this strategy appeals to you, Goldberg would list your must-haves over other elements you’re more willing to wait on, then make a decision. But remember that working in phases doesn’t mean trying to time your project perfectly.
“Like anything else, a waiting game is always a gamble,” Goldberg says. “Conditions could always get better or worse along the way. Invest in the things that are most important to you and the things that aren’t as easy to change, such as flooring, tile, stone, plumbing and cabinetry. You can always update things like light fixtures or moulding later on, so save it for a time that feels more comfortable for you.” As long as you’re willing to be flexible yet prudent, you’ll get the before-and-after you’ve planned.
