Drew Dixon
The more Florida’s population surges, the more construction is needed to keep up with growing demand. But a new study by a watchdog group shows that’s getting more expensive.
Florida TaxWatch published its “Trends in the Cost of Construction Materials” report. The findings show the construction industry accounts for about $97 billion, or 5.7%, of Florida’s gross domestic product. That’s a powerful element of the state’s economy, but the cost of keeping pace is going up.
TaxWatch analysts noted that since the COVID pandemic in 2020, construction materials have become increasingly expensive across the United States. Supply-chain disruptions, labor costs and trade uncertainty have all contributed to those rising costs. And given the inflation, Florida can’t avoid feeling those impacts, especially in housing.
“Florida is experiencing similar trends. The RoMac Building Supply Whole House Commodity Index, a measure of the cost to build a home in Florida, was 5.1% higher in July 2025 than in July 2024. These increases are estimated to add approximately $10,000 to the price of a new home and are causing budget overruns in affordable housing projects,” the TaxWatch report said.
Construction materials that have seen the most inflation in the Southeast U.S. include wood prices, which have jumped 8.2% year-over-year, and drywall and insulation, with a 6.2% jump. Steel costs went up by 5.1%, and the cost of concrete has ticked up by 4.7% between June 2024 and June 2025.
Complicating the situation are the international dynamics of tariff policies by the Donald Trump administration. “With domestic production struggling to meet demand, Florida remains vulnerable to global trade volatility,” the report said.
Dominic Calabro, President and CEO of Florida TaxWatch, said all those factors present a difficult outlook for construction businesses in the state.
“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 7% 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,” Calabro said.
Florida has already been facing questions about affordable housing for most of the past five years. But the rising construction prices will strain the housing market even more, according to Jeff Kottkamp, TaxWatch General Counsel and Executive Vice President.
“As of August 2025, there is a 50% 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,” Kottkamp said.
