Making Sense of Market Volatility: What It Means for Your Home Build
The stock market has been anything but steady lately. Market fluctuations, tariffs, and broader economic signals can impact everything from client confidence to material costs. As a residential contractor, understanding the ripple effects helps us meet the needs of our clients and try to mitigate any supply chain or price adjustment surprises.
1. Stock Market Swings and Homebuyer Hesitation
When Wall Street gets jittery, potential homebuyers often hit the brakes. Recent tariff announcements have sent the S&P 500 on a wild ride, dipping about 7% year-to-date. This kind of volatility can make buyers, especially those eyeing custom builds or major renovations, think twice before committing.
2. Tariffs: The Pricey Thorns in Our Side
The latest round of tariffs has been difficult to plan for. With approximately 7.3% of our building materials coming from abroad, these tariffs could hike up costs for essentials like steel, aluminum, wood, and fixtures. We’re looking at potential increases of 7% to 14% in material costs this year..
3. Supply Chain: The Domino Effect
Beyond just higher prices, tariffs can throw a wrench into the supply chain gears. Delays in material availability mean projects might stretch longer than expected. This not only tests our project plans but can also strain client relationships and our bottom lines.
4. Mergers and Acquisitions: The Industry Shuffle
Despite the market’s swings, the big players are still playing musical chairs. Mergers and acquisitions in the building sector continue, signaling that the industry’s long-term outlook remains solid.
In uncertain times, staying informed and adaptable is key. Whether you’re planning a renovation or starting from the ground up, understanding the broader landscape helps ensure a smoother project. If you’re considering a build or update and want to work with a team that keeps an eye on both craftsmanship and the market, get in touch—we’re here to help turn your plans into something solid.
De Mott, F. (2025, April 8). BofA warns earnings in this corner of the stock market could be headed for a 20% drop because of tariffs. Business Insider. https://www.businessinsider.com/tariff-impact-on-stocks-earnings-housing-market-tariff-trade-war-2025-4
Elfenbein, R. (2018, April 9). What stock market turbulence means to builders. Builder. https://www.builderonline.com/money/what-stock-market-turbulence-means-to-builders_o
Garrity, P. (2018, April 4). What the reciprocal tariffs mean for home builders. Builder. https://www.builderonline.com/money/what-the-reciprocal-tariffs-mean-for-home-builders_o
Smith, J. (2025, April 4). The big losers in Trump’s tariff chaos—and a couple of survivors. The Wall Street Journal. https://www.wsj.com/finance/stocks/the-big-losers-in-trumps-tariff-chaosand-a-couple-of-survivors-374730fc