Some developers report steel prices up by as much as 20%, forcing them to adjust project budgets or pass costs on to clients.
On CEO told Business Insider his New Jersey warehouse project has seen steel costs climb by 8-10%, adding $2 million to expenses.
Another developer working on a $100 million warehouse near Washington, DC, avoided a 15% steel price hike by locking in early pricing but still expects overall construction costs to rise by about 10% due to higher prices on rebar, insulation, and roofing.
The tariffs, which took effect on March 12 and include a 25% duty on foreign steel and aluminum, are also affecting renovations.
Richard Jantz from Cushman & Wakefield said a Manhattan office tenant recently put a $20 million renovation on hold due to price increases on materials like ceiling tiles and lighting systems, which often rely on imported components.
While the real estate industry initially expected growth in 2025, Trump’s unpredictable trade policies have created uncertainty.
A sudden announcement of a 50% tariff on Canadian steel on March 11—later withdrawn the same day—has left developers wary.
Many are now waiting to see if further policy changes will impact costs before moving ahead with new projects.
