PALM BEACH COUNTY, Fla. — As residents of South Florida grapple with rising living costs, many are feeling the financial squeeze.
Concerns about being priced out of their communities have prompted WPTV to seek answers about the role of tariffs in the region's housing crisis, particularly regarding the construction of affordable options.
In Palm Beach County, the median family income for 2024 is projected at $104,000, as reported by the Housing and Urban Development (HUD).
WATCH: Palm Beach County housing director reassures that rental rates will remain based on salary and area median income
However, many residents, like Tamara Gray, express worry about escalating prices.
"Definitely worried that it's going to get expensive," she said.
Diane Solomon echoes this sentiment with a feeling of anxiety for families facing rising costs of living.
"I'm sorry for people who have families and the price of things are going up," she said.
The National Association of Home Builders (NAHB) has revealed that the costs of building materials rose by an astonishing 34% since December 2020.
Approximately 7% of all goods used in new residential construction were imported last year, and recent tariff actions have resulted in an average increase of about $9,200 per home, according to builder estimates.
While former President Trump exempted certain materials, such as lumber, from tariffs, many essential construction materials remain subject to increasing costs, prompting concern throughout the construction industry.
WATCH: What residents are saying about newly proposed tariffs
To better understand how these changes are impacting local builders, we reached out to BuilderGurl, a local construction company.
CEO Tiffany Jackson shared firsthand insights.
"Based on what you had last year, your budget is totally out of whack," he said.
She noted that although domestic lumber prices have decreased, tariffs have driven up the costs of imported materials like rebar, but that it's still cheaper overseas.
Jackson emphasizes the variability of prices in the construction sector.
"I make sure they realize, hey listen, the price this month may be this price, in February may be a little cheaper," Jackson said. "It also goes down, the price doesn’t always go up, it also goes down, and guess what Mr. Customer, you get that decrease as well."
However, a pressing question remains.
Will these tariff-induced costs lead to higher rents for workforce housing projects in Palm Beach County?
Jonathan Brown, the county's Housing and Economic Development Director, reassured that an ordinance governs rental rates based on salary and area median income, placing a maximum limit on what can be charged.
City-based workforce housing projects may have different ordinances, he noted.
For cities like Lake Worth Beach, affordable and workforce housing rent structures are similarly tied to the median household income of Palm Beach County.
As a result, the current tariffs are not expected to affect rental prices for tenants.
Meanwhile, St. Lucie County has stated that it is still too early to fully gauge the tariffs’ impacts on their workforce housing units.