Chicago Builders Warn Tariffs Could Choke Housing Starts
Rising Material Costs Force Developers to Reassess Project Viability Material costs continue to surge across Chicago's construction sector. This is forcing developers to abandon projects and reassess the financial viability of new housing developments. Tariffs on essential building materials have added an average of $9,200 to each newly constructed home. Builders throughout the metropolitan area now face unprecedented project challenges. Construction costs in Chicago jumped 2.6% during the first quarter of 2025 alone. Annual increases have reached 4.5%. Material costs now average approximately $50 per square foot. This is pushing many residential projects beyond acceptable profit margins. Structured changes in the commercial real estate market have also influenced Chicago's development dynamics. Structural steel and metal decking experienced the steepest increases at 6.0%. Aluminum storefronts rose 4.0% and plumbing materials climbed 3.5%. The Dodge Momentum Index showed a 5....