Builders and developers in Southern California are grappling with uncertainty due to the introduction of new tariffs on construction materials. This challenge is particularly acute in fire-stricken neighborhoods where a surge in rebuilding is anticipated. Contractors are forced to make hastened purchasing decisions on essential materials, already seeing prices increase. As they navigate rising costs and potential shortages, many are factoring in a contingency budget to manage "market volatility". The unpredictability around tariffs is a significant concern for those involved in rebuilding efforts, compounding their challenges.
Many builders are trying to budget for rising costs but are frustrated because they don't know what construction materials and appliances, such as stoves and air conditioners, will cost in the months ahead.
We're padding a 5% to 10% contingency for what we're calling 'market volatility' into the budget," said Cory Singer, a general contractor working on 10 rebuild projects in Pacific Palisades.
Architects, developers and contractors working in fire-affected areas said the most worrying part of the tariff debate is not knowing which levies will remain.
Singer said some of his clients are considering putting containers on their properties so they can buy materials over the next few weeks and store them until they're needed.
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