Lumber Tariffs
How Rising Lumber Tariffs Are Impacting Single-Family Home Construction in Montana (Kalispell & Whitefish)
The cost of building a home has always been subject to fluctuations in material prices, labor availability, and economic conditions. But one of the biggest challenges facing homebuilders in Montana—especially in Kalispell and Whitefish—right now is the sharp increase in lumber prices, largely driven by recent tariffs on Canadian imports.
With single-family home construction already struggling against supply chain issues and inflationary pressures, these new tariffs could significantly increase the financial burden on builders and homeowners alike. In this post, we’ll break down the impact of these tariffs, how they’re affecting lumber prices in Montana, and what the future holds for home construction.
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The Tariff Surge: What’s Happening?
On March 4, 2025, the U.S. government imposed a 25% tariff on Canadian softwood lumber, which is widely used in home construction. This was added to the existing 14.5% tariff, bringing the total tariff on Canadian lumber imports to 39.5% as of April 2, 2025.
Since Montana shares a border with Canada, much of the state’s lumber supply comes from British Columbia, making it one of the hardest-hit states by these tariffs. Builders in Kalispell and Whitefish rely heavily on Canadian imports, so these tariffs have led to a sharp rise in prices, further straining an already volatile market.
How Much Have Lumber Prices Increased?
• The framing lumber composite price has risen by 4.8% to $483 per 1,000 board feet as of March 7, 2025.
• Compared to a year ago, lumber prices have increased by 15.8% nationwide.
• In Montana, prices have risen by an estimated 6% to 18%, with Kalispell and Whitefish seeing some of the largest spikes due to their reliance on Canadian suppliers.
This surge in lumber prices directly impacts the cost of building a home, leading to higher expenses for both developers and homebuyers.
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How Much More Will It Cost to Build a Single-Family Home?
For an average single-family home, which costs around $400,000 to build in Whitefish and Kalispell, these lumber tariffs could add an extra $10,000 to $15,000 to total construction expenses.
What This Means for Homebuyers in Kalispell & Whitefish
• Builders may pass these costs on to buyers, making homes even more expensive in a market that is already seeing rising property values.
• Whitefish, in particular, has a high-demand real estate market, and these tariffs could make homeownership even more challenging for middle-class buyers.
• Kalispell, a rapidly growing area, could see a slowdown in new housing starts as builders struggle with increasing costs.
These increases are making it harder for first-time homebuyers to enter the market, while also discouraging builders from taking on new projects due to shrinking profit margins.
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The Future of Homebuilding in Kalispell & Whitefish
What to Expect in the Next Six Months
Lumber prices are expected to continue rising through mid-2025, especially as builders ramp up projects in the warmer months. Here’s what could happen:
• Construction costs could increase by another 3% to 6% if tariffs remain high.
• Builders may seek alternative materials, such as steel framing, to offset the cost.
• Delays in construction projects could become more common as supply chains tighten.
Possible Solutions
• Tariff Negotiations: If the U.S. and Canada reach a new trade agreement, tariffs could be reduced, stabilizing lumber costs.
• More Domestic Production: U.S. lumber mills may try to increase output to meet demand, but this takes time.
• New Building Strategies: Builders may need to explore cost-saving methods such as modular homes or alternative materials to offset rising costs.
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Final Thoughts: Is Now the Right Time to Build?
With lumber prices on the rise and tariffs increasing construction costs, waiting to build could mean paying even more in the future. While homebuilders in Kalispell and Whitefish are facing challenges, acting now before further price hikes could be a strategic move for those looking to invest in new construction.
If you’re considering building a home in Kalispell, Whitefish, or surrounding areas, now is the time to plan ahead, secure materials early, and work with a contractor who understands the current market conditions.
Looking for a Reliable Contractor?
At WBP Contracting LLC, we stay ahead of market trends and help homeowners navigate rising costs without sacrificing quality. Contact us today to discuss your home-building plans and find solutions to keep your project on budget.
📞 Call us at: [406-890-3507]
📩 Email us at: [petersenwilder@gmail.com]
🌐 Visit our website: wbpcontractingllc.com
