How Tariffs Are Raising NYC Renovation Costs—And the Smartest Way to Manage Them

Table of contents

• Steel And Aluminum: Rising Costs For Electrical, Framing, And HVAC Systems
• Lumber: The Impact On Framing, Cabinetry, And Millwork
• How A Design-Build Firm Helps Navigate Tariff-Driven Price Increases

The topic of tariffs and their impact on renovation costs has been coming up frequently in our conversations with clients. With material prices fluctuating, we wanted to provide clarity on how these changes affect NYC renovations—and, more importantly, what you can do to navigate them.

Steel, aluminum, and lumber are the foundation of nearly every construction project, and rising tariffs on these materials are driving costs even higher. Understanding where these increases hit the hardest—from electrical work to cabinetry—can help you make smarter renovation choices. This is where working with a full-service, brand-agnostic design-build firm like Gallery becomes particularly beneficial. 

With no financial ties to specific materials or vendors, our recommendations are based solely on what best suits your project, ensuring a balance of quality, cost, and design. This approach is especially key locally, as New York City apartment renovation costs are already high, and every decision is extremely valuable.

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[#1]Steel and Aluminum: Rising Costs for Electrical, Framing, and HVAC Systems[#1]

Rising tariffs on steel and aluminum are driving up material costs across NYC construction and renovation projects. From electrical wiring to framing and HVAC systems, these price increases are adding complexity to budgets and timelines. Understanding where these costs are hitting the hardest—and how to navigate them—can make all the difference when planning a renovation. Here is how key building systems are being affected and why working with a design-build firm can help mitigate the impact.

Electrical

In New York City, the building code mandates the use of steel or aluminum encased BX cables for all electrical wiring. Unlike other parts of the country where Romex cables are permitted, NYC requires these heavier, more durable cables to meet NYC electrical code standards. As a result, the recent tariffs on steel and aluminum have already begun to inflate the cost of electrical materials. For renovation projects that involve significant electrical work, whether in apartments, townhomes, or commercial spaces—these tariffs will likely lead to noticeable price increases. Given the amount of wiring needed for large-scale renovations, electrical costs are already being impacted. 

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• Shine more light on the electrical updates for your renovation via our article, The Essential Guide to Electrical Updates in NYC Apartment Renovations.

Framing

Aluminum framing is another construction material significantly affected by the recent tariffs. In Manhattan, aluminum is commonly used for framing due to its lightweight yet durable properties, making it ideal for transportation through tight spaces, such as building service elevators. The rising cost of aluminum has directly impacted both structural framing and interior partitions. Renovations that involve substantial reconfiguration, such as moving walls or creating new rooms, will be particularly affected by the tariff-induced price increases.

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• For more insights on large-scale renovations involving major structural changes, check out our popular article, Gut Renovations in New York City 101.

HVAC Systems

Tariffs on steel and aluminum also have implications for HVAC systems, as many of these components rely on both metals. Increased costs for these materials could lead to higher prices for new heating, ventilation, and air conditioning systems, as well as the ductwork and piping associated with these systems. Renovation projects requiring HVAC upgrades will need to account for these rising material costs. 

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• For more on the intricacies of HVAC, read Why Custom HVAC Solutions Are Essential For Pre-war Renovations In New York City.

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[#2]Lumber: The Impact On Framing, Cabinetry, And Millwork[#2]

The cost of lumber is a key factor to monitor, as it can have the most significant impact on renovation costs. From plywood and framing materials to cabinetry and millwork, the price of wood—particularly Canadian lumber—can substantially affect both renovation and construction budgets. While it remains uncertain whether tariffs on Canadian lumber will be officially implemented, the potential for increased prices is already creating some uncertainty in the market.

Even if the Canadian tariffs do go into effect, it’s still unclear whether sourcing from Canadian brands might still prove more cost-effective compared to other alternatives. As a design-build firm that operates in a brand-agnostic manner, we have the flexibility to source materials from a wide range of suppliers, which provides us with options to pivot when necessary. For example, Canadian cabinetry and lumber, despite the potential for price increases, may still be a viable option depending on the overall cost comparison to European or some US made cabinetry of similar quality.

• For more on maximizing value when considering cabinetry for NYC renovations, read The Truth About Luxury Kitchen Cabinet Costs: What You’re Really Paying For.

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[#3]How A Design-Build Firm Helps Navigate Tariff-Driven Price Increases[#3]

The ever-changing landscape of tariffs presents a challenge for homeowners and developers alike. However, working with an experienced design-build firm like Gallery can provide several key advantages to help mitigate these challenges:

Expert Sourcing And Flexibility

As a design-build firm with a brand-agnostic approach, we have access to numerous suppliers and vendors, which allows us to explore a variety of options to ensure that we can source materials at the best possible prices, regardless of tariffs.

Project Cost Management

With expertise in managing budgets and timelines, our team can proactively plan for material cost increases by identifying where we can reduce costs elsewhere. For example, by using innovative design techniques or alternative materials, we can balance the budget without compromising on the quality or aesthetic of the final result.

Adaptation To Market Conditions 

Our fully integrated design-build model allows for quick adaptation to changing market conditions without relying on outside parties. If tariffs continue to rise, we can swiftly adjust procurement strategies and offer clients cost-effective solutions that align with their budget and vision.

Access To Trusted Suppliers

Over the years, we’ve built strong relationships with a diverse network of suppliers, allowing us to secure competitive rates and reliable delivery timelines. This reduces uncertainty and helps keep your project on track.

Conclusion

As tariffs continue to shape the renovation landscape in New York City, homeowners and developers must be prepared for rising costs. Electrical, framing, and HVAC work will likely see the most immediate impact from steel and aluminum tariffs, while lumber price fluctuations could affect cabinetry and millwork expenses. However, partnering with a design-build firm can help mitigate these challenges.

At Gallery, our expertise in material sourcing plus procurement, cost management, and adaptability allows us to keep projects running smoothly despite market fluctuations. Whether you’re planning a gut renovation or a targeted remodel, we’ll help you navigate the ever-changing material costs while ensuring your vision comes to life.

Considering A Renovation in NYC? Let’s Talk

If you’re considering a NYC renovation, we’d love to discuss how our team can help you achieve ideal results. Contact us today to learn more about our process and start planning your dream home. Or, view our portfolio of Manhattan apartment renovation before and afters, then learn more about Gallery.

We are an award-winning design-build firm in New York City with a comprehensive renovation process that caters to our clients. We’re experts in pre-war apartment renovations, apartment combinations, room creations, full gut renovations and all that falls in between. Let us bring your dream home to life.

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