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Home builders say tariffs are driving up construction costs

Home builders say tariffs are driving up construction costs
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COLORADO SPRINGS, Colo. (KOAA) — According to new federal data, the prices of materials used to build new homes were up 2.8% in July compared to the year before.

In the Pikes Peak region, the number of single-family home permits issued for the year is down compared to last year.

According to the Pikes Peak Regional Building Department, July was the third busiest month of this year.

"I think we will build about 40 (homes)... 40 starts, which compares to last year... we probably had 30," said Mark Long, Managing Director of Vanguard Homes.

Long says building new homes hasn't been easy due to high construction costs.

"We are actually building more houses than last year because we have more subdivisions," said Long.

Long says, however, that prices are making building more challenging for a new reason.

"Uncertainty in the market caused by tariff policy," said Long.

Tariffs on steel and aluminum are causing some issues. He says that some building materials have increased by 25%.

"I have told my partners that the company we've had for the last 10 years will not be the company that we will have for the next 10 years," said Long.

He says the company is now taking a different approach to attract buyers.

"Right now, we are building some duplexes, duplex townhomes. We are building cottages with separate garages," said Long. "We've had to be far more nimble, agile, and flexible."

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