FOR IMMEDIATE RELEASE: Wednesday, September 10, 2025
CONTACT: Christina Johnson
Tallahassee, Fla. – Today, Florida TaxWatch released its latest Economic Commentary: Trends in the Cost of Construction Materials, a look at the increasing price of construction materials at the national level and in Florida to inform Florida taxpayers of current and possible future costs. Construction is an important part of Florida’s economy – contributing 5.7 percent ($97 billion) of the state’s gross domestic product (GDP) in 2024.
Florida TaxWatch President and CEO Dominic M. Calabro said, “Florida’s economy is growing in terms of population and urban development. Moreover, as of May 2025, the construction industry is expected to grow by seven percent in 2025, with a focus on mixed-use and infrastructure developments. Although contractors remain positive about the construction industry, prices in the sector have increased throughout the state, and higher prices are anticipated due to uncertainty in the trade market.”
Florida TaxWatch Executive Vice President and General Counsel Jeff Kottkamp said, “As of August 2025, there is a 50 percent tariff on all steel, aluminum, and copper imports in the U.S. and economists state that the construction industry, at present, is very volatile in terms of demand and supply – which normally means prices are volatile as well. The current situation with tariffs is very fluid and the best way to plan ahead, for anything construction related, is to stay constantly informed about trade laws and tariffs regarding construction materials.”
Construction encompasses everything from minor home repairs to housing construction to complex commercial developments. The construction industry is shaped by several factors, including material costs, labor costs, supply chain stability, and overall market trends. The cost of each individual input can increase the total cost of production for a contractor and even for a “do-it-yourself” enthusiast making renovations in their home.
The five primary materials used in commercial construction are concrete, steel, wood or lumber, stone, and brick/masonry. A cost increase in these materials can quickly increase costs for the consumer. Table 1 shows the percentage change in the price of construction materials over the past year (from June 2024 to June 2025).
Further, a July 2025 Florida TaxWatch report, The Potential Impacts of New Tariffs on Florida’s Economy, stated that 75 percent of the of the imported lumber used for construction comes from Canada, and a crucial component of drywall—gypsum—comes from Mexico. A survey by the Associated General Contractors of America (AGC) showed that 46 percent of Florida contractors cited material costs as their top concern. Higher costs of construction materials in Florida can raise the price of a house by approximately $10,000.
The Florida Department of Transportation also expects a rise in cost of construction of five to nine percent. Another study estimates Florida real estate costs increasing by three to five percent in 2025. Additionally, increased material costs are already causing a four percent budget overrun in affordable housing projects – affecting the Live Local Act.
To learn more and access previous reports, please click here.
About Florida TaxWatch
As an independent, nonpartisan, nonprofit government watchdog and taxpayer research institute, and the trusted “eyes and ears” of Florida taxpayers for more than 45 years, Florida TaxWatch (FTW) works to improve the productivity and accountability of Florida government. Its research recommends productivity enhancements and explains the statewide impact of fiscal and economic policies and practices on taxpayers and businesses. FTW is supported by its membership via voluntary, tax-deductible donations and private grants. Donations provide a solid, lasting foundation that has enabled FTW to bring about a more effective, responsive government that is more accountable to, and productive for, the taxpayers it has served since 1979. For more information, please visit www.floridataxwatch.org.
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