Material Costs & Market Shifts: What Custom Home Clients Should Know Heading into 2026

Building a custom home is one of life’s most exciting milestones — and at Kennedy + Kenel, we believe it should feel that way from start to finish. As we move into 2026, many clients looking to build are hearing about rising material costs, shifting markets, and U.S. tariffs. These topics can seem overwhelming, but with the right builder guiding you, they don’t have to be.

Our role is to make the process clear, fair, and enjoyable for our clients. Below, we break down what’s happening in construction, how it may influence your project, and how our team ensures your custom home is built with confidence, transparency, and exceptional value.

What’s Been Behind Material Price Changes in 2025–and why things aren’t likely going to change

The construction landscape always evolves — and this year, several factors have shaped the price of building materials across Ontario.

U.S. Tariffs on Key Materials

This is not a popular topic, but nevertheless an important one. Tariffs on steel and aluminum affect items like beams, rebar, and window systems. These are important materials in any high-quality custom home, which means pricing can shift depending on global trade decisions.

Currency Fluctuations

When the Canadian dollar or a foreign currency moves, it can affect the prices of imported finishes or popular specialty items such as premium European fixtures or stone.

Supply Chain Adjustments

After years of global instability, manufacturers are still stabilizing production levels. This influences both pricing and delivery times for certain materials.

Rising Labour & Transportation Costs

Across North America, fuel, shipping and labour costs have been on the rise. These factors have added pressure to material pricing. Read more on factors affecting the housing sector at Ontario Home Builders’ Association (OHBA).

All of the above might sound complicated or troublesome — but that’s exactly why having an informed builder matters.

How Material Costs Influence Custom Home Projects

A custom home — especially a luxury one — uses a curated blend of premium materials designed for longevity, performance, and beauty. These include engineered lumber, structural steel, high-end glazing systems, and custom finishes. Engineered wood products are particularly vulnerable to cost increase, since many are sourced from or rely on U.S. manufacturing.

When markets shift, builders typically respond in one of three ways:

• Some increase prices across the board
• Some reduce quality or change to cheaper materials
• Some make clients absorb sudden cost changes

At Kennedy + Kenel, we take a different approach. We balance fairness, transparency, and careful planning to protect your budget while preserving the quality you expect. We treat every project as if we were building our own home — and we want each client to feel looked after, not pressured.

We balance fairness, transparency, and careful planning to protect your budget while preserving the quality you expect.

How Kennedy + Kenel Protects Your Budget and Experience

Local Sourcing & High Quality

Whenever possible, we choose Canadian suppliers for steel, lumber, stone, and exterior materials. This helps:

• Reduce exposure to U.S. tariff pricing
• Support local trades and manufacturers
• Keep costs more predictable
• Maintain consistent product quality

When it comes to specialty products — like imported Italian marble or European crafted hardware — we work closely with clients to ensure they understand the cost and timeline implications upfront, so there are no surprises later on.

Our Contracts Are Built to Be Fair

A good client relationship is the backbone of our ethos. We believe fairness builds trust. That’s why our contracts and budgeting practices include:

• Clear contingencies
• Honest material pricing
• Transparent communication about market changes
• Options to lock in pricing when possible

We never spring last-minute surprises on clients. Instead, we offer solutions and alternatives — because your peace of mind matters.

We offer solutions and alternatives — because your peace of mind matters.

We Value-Engineer Without Sacrificing Luxury

Value engineering is not about cutting corners; it’s about making smart decisions. Our team works with clients to:

Evaluate Material Alternatives: Swap in domestic steel or aluminum where performance and aesthetics allow, or substitute with other high-end but locally available materials.

Implement Design Efficiency: Minimize waste by optimizing structural design; design beams and framing to use less material without losing strength or design quality.

The goal is to preserve both beauty and integrity to create the luxury and performance you expect — while navigating market conditions wisely.

Our Strong Supplier Relationships Benefit Our Clients

Over the years, we’ve built strong, respectful relationships with our Canadian suppliers and trades. Longstanding and proven relationships translate to better pricing, dependable timelines, and priority access to high-demand materials — advantages we leverage for our clients.

What This Means for Custom Home Clients Heading Into 2026

Despite the headlines, 2026 is still an exciting time to build a custom home. With the right builder team behind you, the process stays smooth, predictable, and enjoyable!

Clients working with us can expect:

• Clear communication about costs
• Fair and transparent pricing
• Guidance on smart material choices
• High-quality Canadian craftsmanship
• A builder who stands with you — not opposite you

We see every project as a partnership. Your goals become our goals, and your home becomes our shared vision.