March 15th, 2018 1:08 PM by Eric Fang
The Trump administration's new tariffs on imported steel and aluminum may raise prices on a variety of consumer and commercial products, but will only put minimal strain on the housing industry.
The 25% tariff on steel and the 10% tariff on aluminum are more likely to be a concern for commercial and multifamily construction than the single-family sector, said Tim Rood, managing director at Situs and chairman of consulting firm The Collingwood Group.
"I think for single-family, imported steel and aluminum are going to contribute a small percentage to the home's cost, but when you talk about multifamily and commercial construction, it's substantially higher," said Rood.
But while the American Iron and Steel Institute estimates 43% of steel imports go to the construction industry, very little of it is used in residential construction. Steel frames accounted for less than 0.5% of new single-family houses and about 4% of multifamily buildings, according to Census Bureau estimates.