Home Builders Have Leverage Over Suppliers On Tariff Costs -- Market Talk
Dow Jones
Jul 30, 2025
1208 ET - Tariffs could add an extra $6,800 to the cost of building a home, but builders are well-positioned to shift those costs onto suppliers, UBS analysts say. In the fourth quarter of 2024, the top 16 home builders controlled 47% of the market, compared to 25% in 2013. That concentration gives large home builders pricing leverage over suppliers. The analysts note that Hilla Sferruzza, chief financial officer of home-builder Meritage Homes, recently said that the company has successfully pushed back on any tariff costs from suppliers. This negotiating power, plus cost containment efforts and easing sales incentives should promote solid margins for home builders.(nicholas.miller@wsj.com)
(END) Dow Jones Newswires
July 29, 2025 12:08 ET (16:08 GMT)
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