Since the Covid-19 pandemic, construction costs nationally have surged. In Florida, from July 2024 to July 2025, the cost to build a new home rose by 5.1%. Specific categories of materials that were hit hard in construction were wood, drywall/insulation, steel, and concrete.
An added strain on the real estate market is higher costs for imported materials following the recent tariffs. This is especially the case for steel, as imported steel has had a tariff of 50% since August, and 25% since June. When combined with higher domestic products, the cost of building a new home will likely continue to escalate for now.
With construction costs continuing to grow, homebuyers should expect to see a spike in listing prices, and be prepared to pay extra or wait for an improved market.
