Uncertainty about construction costs torments builders amid tariff battle

www.latimes.com
8 min read
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Uncertainty about which imports will be socked with new tariffs and when they'll go into effect has thrown a cloud over home builders and other real estate developers trying to pay for new construction throughout Southern California.
People work on one of the first homes under construction in the fire zone in Pacific Palisades on April 15, 2025. Architects, developers and contractors working in fire-affected areas said the most worrying part of the tariff debate at the moment is the uncertainty.

Uncertainty about which imports will be socked with new tariffs and when they'll go into effect has thrown a cloud over home builders and other real estate developers trying to pay for new construction throughout Southern California, including neighborhoods scorched by the January wildfires.

Many builders are trying to budget for rising costs but are frustrated because they don't know what construction materials and appliances, such as stoves and air conditioners, will cost in the months ahead.

Questions surrounding the tariffs are already forcing contractors to make quick purchasing decisions, especially for windows, doors, plumbing and lighting fixtures and other materials made or manufactured in China, which are subject to duties of 145%. Prices for their customers are already going up.

"I think this will be the first to be done," said Cory Singer, co-owner of Dolan Design, while overseeing construction of the first home being built in the fire zone at 15256 De Pauw St. in Pacific Palisades on April 15, 2026. Dolan Design is overseeing the rebuild. (Genaro Molina/Los Angeles Times)

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"We're padding a 5% to 10% contingency for what we're calling 'market volatility' into the budget," said Cory Singer, a general contractor working on 10 rebuild projects in Pacific Palisades, including the first home under construction there since fire tore through the neighborhood.

He said a tile supplier told him last week that if he didn't place an order immediately the new price would be 10% higher, and Singer is telling rebuilding homeowners to prepare for higher costs.

The wildfires — which burned an estimated 16,000 homes, businesses and other structures — will ignite a massive construction…
Roger Vincent, Liam Dillon
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