Affordability continues to be a challenge for house hunters. With a steady stream of tariff announcements from the White House, affecting everything from building materials to furniture and cabinetry, house hunters might be feeling uneasy about anticipating new home costs.
The good news is that although you can’t control tariffs, you can control your costs, with the right approach.
Here are 7 ways to build mindfully to manage tariff costs and make your new build more affordable.
1. Scale Down Size
A smaller home requires fewer building materials and less time on labor, driving down costs across the board.
Many homebuyers are embracing the smaller-is-smarter mentality already: The median home size dropped from 2,200 square feet in 2023 to 2,150 square feet in 2024, the lowest in 15 years. Until recently, the average size was around 2,300 square feet, according to data from the National Association of Homebuilders.
Want an affordable, lifestyle-friendly home? Think about a townhome. They are generally less expensive, and have functional floor plans in a smaller footprint. Data shows that townhomes sales are inching past detached homes nationally.
2. Rethink Your Design
In 2025, you may need to shelve your ideas for complex architectural features and custom details and streamline your design plans for a more affordable home.
This could be as simple as sticking to your builder's pre-designed stock home designs. After being built repeatedly, they are tried and true, familiar to the building team, and already have precise measurements in place so materials do not go to waste. This smooth process will save you time and money.
Stick to rectangular shapes, too. Unusual shapes and rooflines can drive up framing and finishing expenses. Even opting for an open floor plan on your main floor requires fewer walls. The NAHB also suggests building upwards with a two-story design rather than outwards, such as with a ranch design.
3. Use Local, Look for Low and Tariff-Free Materials
Whether you are building a custom home or buying off a plan, talk with your builder about how they are reconfiguring their supply chain and making substitutions to cut costs on tariffs.
Some may exclusively build with local materials to avoid sourcing imported materials that are hardest hit by new taxes and affected by supply chain disruptions. They might also be considering materials from countries that have more favorable trade agreements with the U.S.
Steel, aluminum, concrete and similar materials are all subject to tariffs of varying degrees. Meanwhile, roofing materials like roof shingles, asphalt-based roofing, and masonry products are less impacted because they are usually domestically sourced.
In the current market environment, a growing number of builders are taking a hybrid approach to construction, using a mix of prefabricated structural insulated panels with metal framing, concrete forms, and 3D printing to bring home construction to life.
4. Opt for Local Appliances Over Imported Brands
Appliances are not hit with specific tariffs per se, but that doesn’t mean that they aren’t affected. Major appliances such as refrigerators, dishwashers, and HVAC systems are often imported from other countries. Importers pay tariffs on these goods, which is usually passed along to consumers.
Furthermore, materials used in appliances are subject to tariffs, such as aluminum and steel.
Don’t assume a product assembled in the U.S.A. means that it is “American-made”. Frequently, parts are shipped from abroad, and then assembled domestically, so still subject to tariffs.
The bottom line is that consumers are paying more for appliances now.
In 2019, U.S. researchers studied the effects of a new 20 percent tariff on washing machines and found that prices spiked by 12 percent, making them roughly $86 to $92 more. Dryers, not included in the tariffs, jumped in price, too, by five to 17 percent.
Now, more than ever before, is the time to comparison shop. Look for brands that are majority American-made, such as Whirlpool and GE Appliances, which should be more competitively priced next to imports.
Also determine where foreign appliances are made (some countries are subject to higher tariffs, compared to others)
It is also worth looking at prices at big-box retailers, which may be buying in bulk or have an overflow of stock, compared to local dealers who may have bundling discounts and incentives.
Consider used or refurbished appliances from local resale shops, too.
5. Postpone Kitchen, Bath and Flooring Upgrades
Kitchen and baths are about to get significantly more expensive with the latest round of tariffs, applied to cabinetry and bathroom vanities,. Stay basic with kitchen and bath design for affordability’s sake. You can always DIY down the road, when the costs are more stable.
Kitchen cabinets and bathroom vanities are facing a 25% tariff increase and will double on January 1, 2026 to 50%.
Throughout your home, think carefully about flooring options. Hardwood is trending, but lumber is subject to hefty tariffs. It’s worth investigating other options that might be more affordable short-term, and you can upgrade later.
6. Go Modular
Modular homes are factory-built under controlled conditions, which reduces waste, lowers labor costs, and accelerates build times.
Not to be mistaken with mobile and manufactured homes, which are partially constructed in factories and assembled on a permanent trailer chassis, modular homes are assembled onsite and attached to a permanent foundation. They blend in seamlessly with traditional site-built homes – and for years, policy analysts have suggested they are the key to increasing affordable housing.
Modular home design has become so advanced that homebuilders have built modular houses in various architectural styles, including ranch, colonial, and chalet. And because they are built in a factory with robotic saws and nailers, they are constructed with a much smaller team and in as short as five to six weeks. Overall, they can cut costs by 20 percent, according to consultancy firm McKinsey.
7. DIY What You Can
The NAHB says on-site labor accounts for 20 to 25 percent of the total price of a new home. Considering this, taking on a few DIY projects yourself can shave thousands off the final bill and give your home a more personal touch.
If you want custom colors and accent walls in the home, you can save this task for move-in day. With a few YouTube tutorials, some painter’s tape, and the right rollers, you can handle a few interior walls with ease.
You can also shop for and install your own custom light fixtures, faucets, and cabinet hardware, especially if the electrical or plumbing groundwork has already been done. These finishing touches often have high upgrade markups.
For those comfortable with a green thumb, landscaping and exterior work can offer big savings, too. Planting your own garden, laying sod, or building a simple deck or patio can be done gradually, on your timeline and budget.
If you are unsure where to start, ask your builder for a list of tasks they would allow you to complete after closing.
Pro tip: Steps to make your new home affordable can start before you make the purchase. Builders incentives are plentiful at this time of year, and can go a long way to making your new home affordable, from discounts off the purchase price to mortgage buy-downs.
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