SPOKANE, Wash. – The U.S. Commerce Department has announced new tariffs on timber and lumber products, potentially leading to higher home building and renovation costs. The department cited national security concerns, stating that wood products support critical infrastructure sectors in the United States.
Local realtors and home builders in Spokane are voicing concerns about the impact of these tariffs on homeownership affordability. Karene Loman, president of Spokane Realtors, shared her experience, saying, “We renovated our kitchen about two years ago and now to renovate, the same kitchen would probably be double the cost just because the materials have increased so drastically with the tariffs,” said Loman.
Over the last decade, home prices in the U.S. have risen by 48%. This increase has kept affordable housing at the forefront of discussions. “Home prices are already high and when you add those tariffs, it increases the cost of just basic things for homeownership cabinets, counters, vanities, even the furnishings that go into a home,” said Loman.
The tariffs include a 10% tariff on all timber and lumber imports, with an additional 25% on kitchen cabinets and furniture. Loman further expressed concerns, saying, “Those costs have now increased and so where they can maybe afford the home they might not be able to afford to make it theirs.”
Isaiah Paine from the Spokane Home Builders Association echoed Loman’s concerns. He stated, “We know that’ll increase some right, but we’re looking at all across the gambit there’s increases and we think about housing. We think we got about the 5Ls right so we look at land, lumber, labor, lending, and laws right,” said Paine.
Washington’s Growth Management Act also contributes to higher land prices, adding to the challenges faced by builders. “In all five of those areas consumers are taking a hit, right,” said Paine.
While the Trump administration asserts that the tariffs could benefit American manufacturers, Loman acknowledged the intent but highlighted existing affordability issues. “Oh absolutely, I understand the point of the tariffs right, we want to bring manufacturing back into America. I absolutely understand that what we also have to remember is that we have an affordability problem with homeownership right now as it is and this isn’t helping that,” said Loman.
The 25% tax rate on imported vanities and kitchen cabinets is the steepest of the tariffs, with plans to increase it to 50% at the start of the new year. Paine noted, “So if a company is outsourcing their product, usually that’s something that they’re trying to do for a cost savings to provide a product people can afford,” said Paine.
Paine emphasized the need for government actions that do not add costs to home purchases. “Rationing down and doing what we can from a government standpoint to not keep adding additional costs onto the home purchase because then we’re just keeping our friends and neighbors out of the opportunity of owning a home and building generational wealth for them and their families,” said Paine.
President Trump argues that the tariffs will protect U.S. industries from foreign competition and raise money for the U.S. Treasury. However, Loman and Paine stress that housing affordability should remain a top priority. “Again, trying to equalize that you know affordability, what’s affordable for people and where home prices are at and then try to close that gap,” said Paine.
