Trump’s China tariffs are driving up the cost of new homes in California by $20,000

Sacramento Bee ^ | September 05, 2019 | Kate Irby

[artichokegrower]

President Donald Trump’s tariffs have created the “perfect storm” at the wrong moment for the housing industry, California builders say.

The California Building Industry Association estimates tariffs have driven up the cost of an average-size new home by $20,000 to $30,000.

[Durbin]

When the median price for a home in California is more than $400k, Trump’s China tariffs are not the problem.

[Chickensoup]

Isnt that 2/10 of 1 percent?

[Chickensoup]

No my decimal point is in the wrong spot.

[Chickensoup]

2 percent.

[tennmountainman]

Exactly.

[Dr. Sivana]

That comes from tariffs appliances, certain counter tops and other miscellaneous items that “at the end of the day, really add up,” according to Dennis Fitzpatrick, owner of Fitzpatrick Homes in Modesto.

I call garbage. Not too many years ago, I built my own home in northern Illinois. Although I used a homeowner's system, I spec'd a lot myself.

My drywall was locally made. My concrete, driveway asphalt and rebar were U.S.

The lumber, wood flooring, stairs and roofing shingles were certainly not Red Chinese, nor was the sepytic tank, siding, paint, furnace, AC flooring or the fiberglass insulation.

The appliances were U.S., Korean or Mexican assembled. The hired labor was not Chinese.

The Kohler and Delta fixtures were not Chinese. That leaves us with can lights, outlets, thermostat, some non-high voltage cable, possibly the well-pump and a couple of sumps, maybe some cheap linoleum.

A Chinese tariff would only add a tiny surcharge to the total cost. Maybe some indirect costs (cheap tools bought by installers, parts in some of the appliances assembled in the U.S.) but all in all a trifle. Much less than extra expenses incurred satisfying the highway department on driveway entry specs and rerouting gas and electric to satisfy septic field rules.

[jmaroneps37]

And?

[central_va]

I think this is all about solar panels. California is different in many ways from real America.

[LS]

Good. No one should live in CA. It’s a failed state.

[BobL]

How about indoor sprinkler systems, solar power mandates, and land use restrictions in California, along with the need to house millions of Illegals - are they Trump’s fault too?

[BobL]

“Math is hard. For a 10% import tariff to increase construction material costs by $10,000 then the total amount of imported construction material would have to be $100,000. I find that really hard to believe.”

Agree, and the material cost for building a house, at least for stuff that can even be imported from China (which excludes wood and concrete, and probably roofing materials), is very, very, low. The article is BS.

[BobL]

“FUCK YOU California!”

Any chance you could clarify your position on California? We don’t like people here that beat around the bush.

[unread]

Ahhh...! Like a sailor you talk..!

[.44 Special]

I agree. I’m for any tax, law or regulation the drives CA further into the ground. All of the woke CA voter have no idea that they are committing societal suicide. Let the great experiment continue!

[litehaus]

Nancy and Mad Maxine are stunned? (maybe stoned?)

[Harpotoo]

20 - 30K is chump change when you consider how over priced calipornia already is:-)

[woodbutcher1963]

Agreed,
Very little new construction items come from China.
Concrete is local, lumber used in California mostly comes from the US and Canada. THERE IS NO LUMBER COMING INTO THE US FROM CHINA. OSB board comes from the US & Canada. Windows and doors and almost all millwork comes from the US.
The only items that may come from China are: lights, faucets and cheap bamboo flooring.

Most construction materials have a much larger percentage of freight cost in their transportation to their final destination. Therefore, it is not typical to ship them half way around the world like an I phone. Also, most construction materials are commodities. There is a much lower profit margin on them. FYI, most framing lumber is only 15-25%.

[DannyTN]

Before the tariffs they were going up due to stupidity.

[Will88]

Dan Dunmoyer, president of the California Building Industry Association, said increasing the cost of $500,000 home in the state by even $10,000 would price out thousands of families.

Complete nonsense. That's doesn't pass any known smell test. A 2% price increase on a $500,000 home would price no one out of typical home, mortgage financing.

[Dr. Sivana]

Very little new construction items come from China.

During the last housing boom, some chuckleheads imported drywall from Red China. A lot of it turned moldy, and wound up costing billions of dollars to replace and who knows how many still standing moldy homes?