Fixing up your home is about to get significantly more expensive, as President Donald Trump’s newly implemented tariffs ripple through the global supply chain. The booming American home renovation sector, which has enjoyed several years of strong growth, is now facing serious disruptions, with material costs set to rise sharply and consumers likely to feel the impact.
The remodeling and design industries have long depended on a complex, international supply chain to deliver everything from Italian marble to globally assembled appliances. However, with the White House’s ongoing rollout of tariffs aimed at reshaping global trade, the affordability and availability of these materials are under threat. As a result, homeowners can expect steep price increases on renovation projects, whether they are replacing bathroom tiles or upgrading kitchen appliances.
Industry professionals are already witnessing the effects. Kevin Twitty, a Portland-based designer, has observed clients pausing or reconsidering renovation plans, influenced not only by direct price increases but also by broader economic uncertainty, including impacts on stock portfolios, expected bonuses, and salary raises. Twitty estimates that renovation costs could rise by about 25%, a figure that significantly outpaces the single-digit increases projected by other firms such as Case Architects & Remodelers in Washington, D.C. Notably, these estimates often do not account for surging appliance costs, which could further inflate final bills.
The global nature of home decor and renovation supplies means that even domestically manufactured goods are feeling the pinch. Barbara Karpf, founder of DecoratorsBest, highlighted that American-made products frequently rely on imported materials now subject to tariffs, forcing even domestic producers to raise their prices. Roofing may seem like a safer category because asphalt shingles are made domestically, but as Andrew Prchal, president of Gunner, explained, critical components like fasteners sourced from China have already increased nearly 70% in price.
Despite prior efforts to diversify supply chains away from China, the latest tariffs affecting other trading partners have left businesses with few alternatives. Michael Alladawi, CEO of Revive Real Estate, noted that while his company has tried to stockpile critical items like cabinets and appliances, these strategies only offer a temporary buffer against rising costs. Moreover, the broader industry had largely prepared for reduced reliance on Chinese manufacturing following earlier trade disputes, but few anticipated sweeping tariffs affecting allies and broader global markets.
As uncertainty looms, consumer behavior remains difficult to predict. Essential repairs, such as roof replacements, are likely to continue, but discretionary renovations could slow. Chicago-based designer Nick Nichols believes homeowners will increasingly focus on high-return projects like bathroom remodels instead of embarking on full-house renovations. Meanwhile, major retailers like Home Depot are monitoring the evolving situation, reassuring customers that over half of their inventory remains U.S.-sourced, but admitting that price adjustments are inevitable.
There may be a silver lining, according to industry veteran Suren Gopalakrishnan, who predicts that higher costs could drive consumers toward more thoughtful purchasing decisions. He envisions a future where higher-quality, longer-lasting goods replace the recent trend toward cheap, disposable products—a potential “reset” for the industry.
However, for small businesses at the heart of the remodeling sector, the primary concern is the unpredictability of the ongoing tariff policy. Many contractors and small business owners are operating cautiously, with some raising prices preemptively to avoid being caught by sudden material cost spikes. Nichols emphasized the need for stability, arguing that small businesses—key drivers of American employment—require a clearer outlook to plan hiring and growth strategies.
One sobering reality remains: even if tariff pressures eventually ease, home renovation prices are unlikely to fall. As Bill Millholland of Case Architects & Remodelers put it, in his 35 years of industry experience, remodeling costs have never decreased after a disruption. This means the era of relatively affordable home improvement projects is likely over, with a new, more expensive reality settling in for American homeowners.
