The newly imposed tariffs on Chinese imports are at the top of the news this week and it is clear that our local market will certainly feel the impact. Hundreds of items could be affected in the remodel and building sector and increased prices are on the horizon. Some examples include countertops like granite, marble, and quartz, tile for bathrooms and back splashes, light fixtures, cabinets, heating and cooling equipment, and flooring The list goes on....
Cost to build and remodel are already higher in California than many parts of the country but a recent survey from the National Association of Home Builders showed that a labor shortage continues to impact housing projects by increasing prices and delaying timetables. Remodeling jobs that involve carpenters, framing crews, bricklayers, and electricians are seeing some of the largest shortages.
On the Monterey Peninsula, cost to build and remodel can vary greatly depending on the project but $500 per foot is not uncommon and prices can go up from there. Will we see a cooling in the remodel sector? We'll have to wait and see.
Source:
“Tariffs Add New Costs to Home Remodeling,” CNBC (May 10, 2019) and “How Steeper U.S. Tariffs on China Could Affect Consumers and Businesses,” CBS News (May 10, 2019)