You’ve probably seen the headlines about tariffs. Steel. Lumber. Aluminum. Copper. What you probably haven’t seen is a clear explanation of how any of that affects you if you’re buying or selling a home in Libertyville, Vernon Hills, or anywhere else in the north suburbs. Here it is.
The Short Version
Tariffs are making it significantly more expensive to build new homes. That cost pressure is already showing up in the market — and it has real implications for how you should be thinking about resale versus new construction right now.
What’s Actually Happening With Costs
Construction input prices surged at a 12.6% annualized rate in early 2026 — the fastest pace since 2022. Tariffs on steel, aluminum, and copper are currently sitting at 50%. Lumber faces additional duties. Cabinets, vanities, drywall — all affected. The producer price index for construction materials hit an all-time high in March 2026, up 6% from a year ago.
Some estimates put the tariff-related cost increase per new home at $17,500 or more. Others are higher depending on materials mix and location.
What This Means for New Construction Buyers
If you’re considering a new build, understand that the base price you’re seeing today may not be the price you close at — especially on homes that haven’t broken ground yet. Builders are dealing with cost uncertainty in real time, and contracts are being written to reflect that. Read the escalation clauses carefully. Ask your builder directly what’s locked and what isn’t.
There’s also a supply angle: fewer new homes are expected to be built over the next several years because of these cost pressures. That means the new construction options you’re comparing today may not exist in the same form 12–18 months from now.
What This Means for Resale Buyers
This is actually a relative advantage for resale. When new construction costs go up, it puts a floor under existing home prices — and it makes a well-maintained resale in a strong suburb look increasingly attractive by comparison. You’re not absorbing tariff costs. You’re buying something that already exists.
What This Means for Sellers
If you’ve been sitting on a decision to list, the cost pressures on new construction work in your favor. Buyers who would have considered a new build are being priced out of that option and redirecting toward resale. Your competition isn’t just other resale listings — it’s also the rising cost of building something new.
The Bottom Line
Tariffs are a headwind for new construction and a quiet tailwind for resale. That dynamic is already playing out in Lake County. If you’re trying to decide between a new build and an existing home, or you’re a seller trying to understand your positioning, this is worth a real conversation.
847.650.4048 | joegattone.com