A cloud over L.A. home builders: How tariffs are tormenting contractors and developers

Los Angeles Times - Apr 17th, 2025

Uncertainty over new tariffs on construction imports is causing headaches for home builders in Southern California, particularly those working on reconstruction projects in areas affected by January wildfires. With tariffs potentially reaching up to 145% on materials from China, builders are struggling to budget for rising costs and are forced to make quick purchasing decisions to avoid further price hikes. Contractors like Cory Singer are advising clients to brace for increased expenses, while Bryan Wong from San Gabriel Valley Habitat for Humanity highlights the unpredictability of tariffs as a major concern in the massive rebuilding efforts across L.A.

The future of the construction industry in Southern California is clouded by the Trump administration's tariff policies, which, combined with immigration and deportation policies, are exacerbating labor shortages. This uncertainty is affecting real estate developers and industrial operators like Dedeaux Properties, as businesses delay major decisions pending clarity on tariff impacts. While the immediate effects of these tariffs are muted, the long-term implications threaten to increase housing costs and reduce affordability, with the National Association of Home Builders warning that tariffs could significantly raise home prices. Despite current challenges, builders remain focused on overcoming these hurdles to rebuild the thousands of homes lost to wildfires.

Trump Administration Tariffs California Wildfires Construction Industry National Association Of Home Builders Home Builders Cory Singer Bryan Wong San Gabriel Valley Habitat For Humanity Dedeaux Properties

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RATING

6.2

Moderately Fair

Read with skepticism

The article effectively addresses the significant issue of tariffs and their impact on the construction industry, particularly in Southern California. It provides a clear narrative and uses quotes from industry professionals to illustrate the challenges faced by builders. However, the story would benefit from more precise data and a broader range of perspectives to enhance its accuracy and balance. While the topic is timely and of public interest, the article's impact could be strengthened by exploring alternative viewpoints and potential solutions. Overall, the article is well-written and accessible, but additional transparency and source variety could improve its reliability and engagement potential.

Accuracy

The story provides a detailed account of the impact of tariffs on the construction industry, particularly in Southern California. It accurately highlights the uncertainty surrounding which imports will be affected by new tariffs and the resulting challenges for home builders. The claim that tariffs on construction materials, such as those from China, are causing price increases is supported by industry insights. However, specific details about the exact tariff rates and the timing of their implementation could benefit from further verification. The narrative aligns with the general understanding of economic impacts due to tariffs, but it lacks precise figures and direct citations to authoritative sources, which would enhance its factual accuracy.

Balance

The article presents a predominantly negative perspective on the impact of tariffs, focusing on the challenges faced by builders and developers. While it includes opinions from various stakeholders, such as contractors and economists, the story could benefit from a more balanced representation of viewpoints. For instance, it could explore potential benefits of tariffs or include input from policymakers who support them. By predominantly highlighting the difficulties and uncertainties, the article may inadvertently skew the reader's perception without offering a comprehensive view of the issue.

Clarity

The article is well-structured and uses clear language to convey the complexities of the tariff situation. It logically progresses from the introduction of the problem to the various impacts on the construction industry. The use of quotes from industry professionals adds depth and helps illustrate the challenges faced by builders. However, some sections could benefit from additional context to aid readers unfamiliar with economic or tariff-related terminology. Overall, the article maintains a neutral tone and is easy to follow.

Source quality

The story relies on quotes from industry professionals and economists, which adds a layer of credibility. However, it lacks direct references to studies, reports, or government data that could substantiate the claims made. The absence of named sources for specific tariff details or economic data weakens the overall authority of the article. Including a wider range of sources, such as official statements from government agencies or independent economic analyses, would enhance the reliability of the information presented.

Transparency

The article provides a clear narrative on the issues faced by the construction industry but lacks transparency regarding the basis of its claims. There is no mention of the methodology used to gather information, nor is there an explanation of potential conflicts of interest among the quoted sources. Greater transparency about the sources of information and any affiliations would help readers assess the impartiality of the article. Additionally, clarifying the basis for the economic projections and uncertainties discussed would improve the article's transparency.