Tariffs and trade policies have always shaped the homebuilding landscape—but that doesn’t mean opportunity vanishes during periods of change. In fact, for prospective AR Homes® franchisees, today’s environment proves just how resilient and well-positioned the brand is.
We sat down with Jason Cassidy, Vice President of Operations at AR Franchising, Inc., to get his perspective on how tariffs are affecting the industry and how he’s helping franchisees succeed through it all.
Understanding Tariffs and Their Current Impact
The effects of recent and pending tariffs on the homebuilding industry have been, in a word, inconsistent. While many manufacturers have announced potential increases, few have provided clear pricing changes—or even followed through.
According to Cassidy, “We don’t source a ton of products manufactured in China, so our exposure is limited to parts and pieces that make up a small portion of the overall price.” In fact, the areas where prices have nudged upward—such as softwood lumber—appear to be driven more by speculative market behavior than by true material shortages.
What Products Are Most Affected?
There are a handful of materials where tariffs are expected to have a more pronounced impact—most notably:
- Structural Steel & Rebar
- Metal Roofing
- HVAC Systems
- Appliances
- Drywall
- Electrical Wiring
Cassidy notes that these materials could experience price increases between 25–35%. “The U.S. currently doesn’t have the capacity to manufacture enough steel domestically,” he explains. “And 71% of drywall and gypsum-based products are imported from Mexico.”
How AR Homes® Helps Franchisees Navigate Rising Costs
Despite external pressures, AR Homes® has taken a proactive, strategic approach to minimizing exposure to tariff-related price hikes. Here’s how:
- Strong Vendor Partnerships: By working closely with trusted, long-term manufacturing partners, AR Homes® is able to shift product recommendations and identify alternatives less affected by tariffs.
- Strategic Sourcing: Many of our partners have already minimized reliance on Chinese-made components—meaning our product base is more resilient.
- Incentive Restructuring: “We’ve worked with vendors to restructure incentive plans when needed, softening the blow to our franchise network,” says Cassidy.
What This Means for Prospective Franchisees
Yes, tariffs are creating some cost pressures—but they’re also showcasing why joining an established, well-supported brand like AR Homes® is a strategic move. “Our network benefits from scale, insight, and proactive planning,” Cassidy emphasizes. “And that’s something individual builders simply can’t match on their own.”
For franchisees, that means:
- Better pricing leverage
- Access to a wide portfolio of vetted products
- Confidence in the face of changing market conditions
Conclusion: Opportunity, Even in Uncertainty
The homebuilding industry may be feeling the ripple effects of tariffs, but AR Homes® is built to weather them—and help our franchisees do the same. Through long-standing vendor relationships, thoughtful sourcing, and a network-first mentality, we continue to empower our franchise partners to build profitably and sustainably.
If you’re considering joining a franchise that knows how to lead through change, now is the time to talk with us.