Key Takeaways

• New tariffs on imported materials like steel and lumber could increase new homes construction costs in Amarillo by 12-18%.

• Custom built homes may become $25,000–$45,000 more expensive, depending on materials and features.

• Energy-saving custom built homes could see a 7-10% price increase due to higher costs of imported solar panels and insulation.

• Amarillo’s housing market may slow down, but builders are looking at local suppliers and alternative materials to balance costs.

How Tariffs Could Impact Energy-Efficient Homes in Amarillo

A Shift in Housing Costs

With new tariffs on imported goods, homebuyers and builders in Amarillo, Texas, are preparing for significant cost increases. The biggest concern is the rising cost of materials, which could drive up expenses across the new homes construction market.

Currently, builders rely on 35-45% imported materials for home construction. With tariffs climbing 10-25%, home prices in Amarillo could increase by $25,000–$45,000 per unit, depending on materials used and home size.

Custom Built Homes: Higher Prices Ahead?

For buyers considering custom built homes, the impact could be even greater.

• Steel framing and luxury finishes sourced internationally may increase by 18-22%.

• Smart home technology and energy-efficient upgrades, which often rely on imported semiconductors, may rise 9-13%.

• Buyers may need to adjust their budgets or seek local alternatives to imported materials.

However, some Amarillo builders are shifting to U.S.-made materials to help manage costs.

Energy-Saving Homes and Rising Costs

The demand for energy-saving custom built homes in Amarillo is increasing, but many key materials, such as solar panels, insulation, and high-efficiency windows, are imported and subject to tariffs.

• Solar panel costs could rise 12-17%, adding $6,000–$8,500 to the cost of an energy-efficient home.

• Energy-efficient windows and insulation could increase by 7-10%, adding several thousand dollars in construction costs.

Despite these increases, builders are investing in domestic energy-efficient materials and exploring state-backed incentives to help offset costs.

How the New Homes Construction Market Will Adapt

Amarillo has seen a 20% increase in new home builds in 2024, but higher costs could slow construction growth by 6-12% in 2025.

Builders are taking steps to adjust:

• Using alternative materials like engineered wood and recycled steel.

• Modifying home designs to minimize reliance on imported components.

• Partnering with local suppliers to reduce costs linked to tariffs.

While short-term price hikes are expected, Amarillo’s strong housing demand and strategic planning by builders should help stabilize the market.

Conclusion: Navigating the Changes

With new tariffs, home prices in Amarillo are set to rise, particularly for custom built homes and energy-efficient designs. However, buyers still have options. Working with builders who prioritize locally sourced materials can help offset rising costs and make new homes more affordable.

For those considering new homes construction, now may be the time to act before prices climb further. If buying isn't the right option right now, B&M Equities offers rental homes in Amarillo, providing quality housing solutions without the upfront costs of homeownership. Whether you're looking to build, buy, or rent, staying informed and working with local experts will help you navigate these market changes.