Finish Carpentry Contractors NAICS 238350

Oct 10, 2025 - Fresh Round of Tariffs on Wood, Lumber

• Beginning on October 14, 2025, the US will add 10% tariffs on wood floors, lumber, and wood, according to The New York Times. Industry watchers say the new tariffs will significantly raise construction and renovation costs for U.S. homebuilders. With duties reaching up to 50% on some items by January, builders who rely on foreign materials warn of project delays and increased uncertainty. The National Association of Home Builders estimates that 7% of materials used in new residential construction are imported. Industry leaders fear the added costs will be passed on to consumers, making homeownership and renovations more expensive while slowing new home construction, deepening the housing shortage, and offsetting any relief from falling interest rates.
• Finish carpenters may see a reduction in subcontracting work for new single-family homes as some homebuilders pull back to protect profit margins. In their recent quarterly reporting, homebuilders KB Homes and Lennar reported lower third-quarter profits as high mortgage rates and economic uncertainty keep buyers on the sidelines, according to The Wall Street Journal. The homebuilding industry is hopeful that lower interest rates will bring in new buyers. Still, some industry observers suggest softness in the US job market could prolong a comeback for the US housing sector. In its third-quarter reporting, KB Homes cut its full-year guidance to $6.1 billion to $6.2 billion, down from its Q2 estimate of $6.3 billion to $6.5 billion.

• Demand for building design services rose slightly in August from the prior month, but design demand remained in negative territory, according to a September report by the American Institute of Architects (AIA). The AIA’s Architecture Billing Index (ABI) rose to 47.2 compared to July’s reading of 46.2. Any reading of 50 or more indicates growth in architectural billings. The score for new project inquiries dropped to 50.3 in August from 53.4 in July, and the index for the value of new design contracts decreased from 47.9 to 47.2. August marked the 18th consecutive month of decline for new design contracts, the longest slump in the 15 years the AIA has collected data. However, the AIA’s Chief Economist, Kermit Baker said, "While business conditions remained soft at architecture firms nationally, there are signs that the downturn may be bottoming out. Inquiries for new projects have increased four straight months, and billings both at firms with a multifamily or commercial/industrial specialization are beginning to stabilize."
• According to data from the US Census Bureau and the National Association of Realtors, the US median price for an existing home was higher than the median price for a new home in the second quarter of 2025. In Q2 2025, the median price for a new home was $410,800, or $18,600 less than the median price for an existing home ($429,400). Buyers typically pay a premium to purchase a new home. Between 2010 and 2019, new homes were, on average, $66,000 more expensive than existing homes. However, the price gap has been narrowing over the past five years, with average new home prices dropping to $24,800 above the average existing home price. Homeowners with low interest rates have been reluctant to sell, pinching inventories. Meanwhile, builders have focused on affordability by building on smaller lots, reducing home sizes, and offering incentives.