Key Takeaways

• New tariffs on imported materials like steel and lumber could increase home construction costs by 10-15% in Amarillo.

• Local builders of custom built homes may face higher expenses, potentially raising home prices by $20,000–$40,000 on average.

• Energy-saving custom built homes may see a 5-8% price hike due to rising costs of imported solar panels and insulation materials.

• Amarillo’s new homes construction market could slow, but local suppliers and alternative materials may help mitigate the impact.

A Shift in Housing Costs

As new tariffs on imported goods take effect, homebuyers, builders and homes for sale in Amarillo, Texas, are bracing for potential changes in the housing market. The biggest concern? Rising costs of materials such as steel, lumber, and electrical components, which could drive up new homes construction expenses across the city.

On average, builders rely on 30-40% imported materials for home construction. With tariffs increasing by 10-25%, industry experts predict that home prices in Amarillo could rise by $20,000 to $40,000 per unit, depending on the size and materials used.

Custom Built Homes: A Price Surge Ahead?

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

• Steel framing and high-end finishes sourced from international suppliers could see a 15-20% price increase.

• Smart home technology and energy-efficient upgrades, many of which rely on imported semiconductors, could become 8-12% more expensive.

• Homebuyers may need to adjust their budgets or look for local alternatives to imported materials.

However, some builders in Amarillo are shifting to domestic suppliers to control costs, which could help limit price increases.

Energy-Saving Homes May Face Higher Costs

The demand for energy-saving custom built homes in Amarillo has grown significantly, with more homeowners opting for solar panels, smart insulation, and high-efficiency windows. Unfortunately, many of these products are imported, making them vulnerable to tariffs.

• Solar panels could see a 10-15% price jump, adding an estimated $5,000–$7,500 to the cost of an average energy-efficient home.

• Energy-efficient windows and insulation could increase by 5-8%, potentially raising overall construction expenses by several thousand dollars.

Despite these challenges, builders in Amarillo are exploring ways to maintain affordability, such as investing in locally sourced materials and partnering with U.S.-based suppliers.

How the New Homes Construction Market Will Adapt

New home developments have been booming in Amarillo, with 18% more homes built in 2024 compared to the previous year. However, higher costs could slow down projects, leading to a 5-10% reduction in new housing starts for 2025.

Builders and developers are already taking steps to adapt:
✅ Exploring alternative materials like engineered wood and recycled steel to reduce costs.
✅ Streamlining designs to minimize the impact of expensive imports.
✅ Working with local suppliers to avoid tariff-related price hikes.

While the short-term effects could mean higher costs for homebuyers, Amarillo’s strong housing demand and strategic planning by builders should help stabilize the market in the long run.

Conclusion: Navigating the Changes

Trump’s new tariffs will likely lead to higher home prices and increased construction costs in Amarillo. However, homebuyers looking for custom built homes or energy-saving designs still have options. By working with builders who prioritize cost-effective, locally sourced materials, buyers can still find affordable, high-quality homes.

For those considering new homes construction, now may be the time to act before costs climb further. If you’re not ready to buy, explore our rental properties in Amarillo, TX, offering flexible and affordable living options while you plan your future home. Stay informed and work with local experts to navigate these changes and secure the best deals in Amarillo’s housing market.