To build or not to build, that is the question. At RBA Projects, we've been hearing it a lot lately, and we want to share our perspective.
Building a custom home or cottage is one of the most meaningful investments a family can make. Part of our commitment to transparency is helping you understand why costs change, not just presenting numbers without context.
Just when construction costs were finally coming back down to earth after the pandemic... BOOM... a trade war with the United States started up. The recent trade tensions between Canada and the U.S. have created real shifts in the price of building materials.
You've likely read the headlines about steel tariffs, lumber duties, and supply chain disruptions. If you've been planning to start a home build or renovation, you may have lost some sleep deciding when the right time to begin is.
Here's what we want our clients to know: those headlines, stories, and reports often focus on commercial towers, industrial facilities, and large developer projects, and cost increases in those sectors have been significant.
The impact on a single custom home or cottage is very different from the impact on commercial construction or large-scale development.
Let's walk through what's actually happening and what it means for your project.
Where the Cost Pressure Is Coming From
Steel and Aluminum Tariffs
The trade war introduced tiered tariffs on steel and aluminum products entering Canada. These apply not only to raw materials but also to fabricated items, including beams, lintels, window frames, roofing panels, and mechanical equipment.
In custom residential construction, these materials show up in:
- Structural steel beams for open-concept layouts
- Aluminum window and door systems
- Metal roofing
- HVAC equipment
These components have seen price increases, but they represent a small portion of the total cost of a custom home.
Softwood Lumber Duties
Lumber has also been affected by combined tariffs and duties. Since most custom homes rely heavily on wood framing, this is one area where we've seen steady upward pressure.
Even so, lumber-driven increases remain modest compared to the steel-heavy world of commercial construction.
How Much Has a Custom Home Actually Increased?
We're realistic about this: yes, building today costs more than it did before the trade war. But the increases are manageable.
For most custom homes and cottages, the tariff-related impact typically falls in the range of a 1 to 3% total project cost increase.
Higher-end homes with the following may see increases closer to 3 to 5%:
- Large aluminum window packages
- Long structural steel spans
- Metal roofing
- Imported fixtures
These numbers are meaningful, but they're nowhere near the double-digit increases seen in commercial construction.
Why Custom Homes Are Less Affected Than Commercial Projects
1. Custom homes rely primarily on wood framing
Commercial buildings depend on steel superstructures, curtain wall systems, and large mechanical assemblies, all of which carry heavy tariff exposure. Custom homes, even modern ones, are built around:
- Dimensional lumber
- Engineered wood
- Smaller steel components
- Residential-grade mechanical systems
This dramatically reduces tariff exposure.
Costs can also vary by location. Most building in cottage country is lumber-framed, with steel added for supports and features. In the city, steel is used more often, but still minimally compared to commercial construction.
2. Fabricated metal assemblies hit commercial projects hardest
Tariffs apply to the full value of fabricated metal products, including labour, overhead, and fabrication. Commercial projects rely on:
- Prefabricated steel assemblies
- Large HVAC units
- Commercial curtain walls
- Structural steel packages
These items have seen substantial cost increases. Custom homes simply don't use these components at the same scale.
3. Developers buy in bulk, and bulk magnifies cost changes
A 2 to 3% increase on a single custom home is manageable. A 2 to 3% increase on a 200-unit development or a $50M commercial project is a completely different story.
Developers feel tariff impacts exponentially because of volume. Many of us have seen developments in our neighbourhoods come to a sudden halt, and this is a big part of why.
What This Means for Our Clients
If you're planning to build a custom home or cottage, here's the practical takeaway:
- Tariffs have increased costs, but not dramatically.
- Your project is not exposed to the same volatility as commercial construction.
- Most of the increase is concentrated in specific materials, not across the entire build.
- Good planning and early procurement help keep budgets predictable. Sourcing from Canadian manufacturers is a prudent choice, such as window companies that manufacture in Canada (e.g., Loewen, Duxton, Euroline) and local lumber mills, where reduced cross-border shipments ease pricing pressure.
At RBA Projects, we work closely with suppliers, engineers, and designers to keep costs stable and transparent. Our goal is always the same: to help you realize the vision you have for your home or cottage, with honesty and clarity at every step.
Final Thoughts
The trade war has reshaped parts of the construction industry, but not every sector has been affected equally. Custom home building has seen modest increases: noticeable, but manageable. Commercial builders and developers are facing a very different reality.
While none of us has a crystal ball, at present you can expect a 1 to 3% increase for custom homes and renovations.
Our commitment is to guide you through these changes with the same openness and family-driven approach that defines our work. The home or cottage you've planned is still absolutely achievable, and the path to get there remains steady.
If you have some thought or would like more of ours. Let's talk.
