Tariffs and Rising Costs: Why Structural Warranties Are More Valuable Than Ever for Home Builders

In recent years, tariffs on key construction materials like lumber, steel, and aluminum have presented a growing challenge for the homebuilding industry. From rising material costs to tighter margins, today’s builders must navigate an increasingly complex economic landscape. As these pressures mount, HOME of Texas offers a strategic advantage: structural warranties that reduce risk, add value, and build buyer confidence in uncertain times.

The Tariff Impact: More Than Just Material Costs

Tariffs on imported materials have a domino effect across the housing industry. Builders are seeing:

• Increased construction costs, leading to thinner margins or higher home prices.
• A potential shift toward lower-cost materials or labor, which may introduce higher risk of structural issues.
• Slower housing starts, reducing the volume of homes—and profits—built each year.

These factors don’t just affect your bottom line—they increase your exposure to liability and customer dissatisfaction. That’s where HOME of Texas comes in:

1. Shift Risk and Safeguard Your Business

When structural problems arise post-closing, HOME’s warranty coverage helps shield builders from costly repairs and potential litigation. This is especially critical when material quality may be harder to control due to cost constraints. With HOME:

• Structural defects are covered for up to 10 years, giving peace of mind to both you and your buyers.
• You transfer liability for qualifying issues to a trusted third-party warranty provider.

2. Build Buyer Confidence

With interest rates and home prices already high, buyers are more cautious than ever. A structural warranty through HOME can:

• Serve as a powerful marketing tool to help close deals.
• Differentiate your homes from competitors who don’t offer third-party-backed protection.
• Provide reassurance that their investment is protected long after the sale.

3. Maintain Reputation in an Unpredictable Market

Even if you pride yourself on top-tier workmanship, no builder is immune to shifting conditions. If higher costs lead to changes in materials or subcontractors, the chance of structural claims may rise. HOME gives you the ability to:

• Stand behind your product confidently, even as market variables fluctuate.
• Protect your brand from the damage of long-term structural issues.

HOME of Texas, along with national affiliate RWC, have over 40 years of experience helping builders manage risk in all kinds of market conditions. With a complete understanding of today’s regulatory and economic challenges, HOME is more than just a warranty provider—we’re your partner in building smarter and protecting your future.

By Rich McPhee, HOME/RWC National Sales Manager