As 2024 is winding down, many customers are looking ahead at their goals for 2025. Whether purchasing land to build a barndominium, building a new machine shed, or even repairing an existing building, creating your project with realistic expectations is essential.
We did this first by devoting additional resources to our repair and renovation services department. We released The Ultimate Guide To Poole Barn Repairs and Renovations to showcase our services. If you need a pole barn addition, storm damage repair, or reskin a post-frame building in 2024, we are here to help!
Following the recent presidential election, many Americans believe that prices will decrease and the cost of living will return to its previous level. However, a proposed 10% tariff on all imports to the United States will impact lumber prices next year.
While we do not have a magic crystal ball to see the future and to know what a pole barn will cost in 2025, many industry leaders are predicting a minimum increase of six percent. In this blog, we will discuss lumber pricing, tariffs, how they affect pole barn pricing, and how to develop a 2025 pole barn budget.
How Has Lumber Pricing Changed Since 2020?
It has now been nearly five years. The price of lumber has ebbed and flowed over the years. Prices recently surged to $615 per thousand board feet, marking an eight-month high amid concerns about supply and evidence of steady demand.
What is causing this change, and how does this affect your pole barn price?
Economical Impacts of Tariffs on Building Materials
A recent article discusses the potential impact of ongoing tariffs on Canadian lumber imports, which have traditionally been a significant source of U.S. lumber.
A proposed universal baseline 10% tariff on all imports to the U.S. will affect lumber imports from major suppliers in Canada and Europe. Duties already imposed by the U.S. on Canadian lumber are set to increase substantially in August 2025, so an additional 10% tariff will likely put off some Canadian softwood lumber exporters.
About 30% of softwood lumber consumed in the U.S. is imported. Domestically produced lumber cannot replace that volume without higher prices, pushing up housing costs and exacerbating the US housing affordability crisis that is deterring first-time buyers and diminishing the home-ownership rate for Americans under 35.
How Do Tariffs Impact Pole Barn Construction?
These tariffs can spike lumber prices, directly affecting the cost of materials for pole barn construction. As Canadian lumber becomes more expensive, domestic mills may struggle to meet demand, resulting in supply chain disruptions and even higher prices.
In addition, changes in immigration policies could lead to labor shortages in the construction and forestry sectors. With fewer workers, lumber production and pole barn construction could face delays and cost increases. Reduced labor availability could drive up wages, contributing to higher overall building costs, including for pole barns.
It is important to factor in whether your pole barn builder hires its own crews. These proposed changes may impact your pole barn labor cost. FBi Buildings hires its own crews and will add subcrew labor when needed, such as for larger facilities.
These ongoing tariffs, along with labor constraints, could lead to a minimum six percent increase by 2025. This increase will directly impact pole barn prices, making them more expensive to build.
As we saw in 2020, the economic change impacted the supply chain. Ongoing supply chain disruptions exacerbated by tariff policies and limited worker availability could lead to lumber shortages in the U.S. This creates an unstable pricing environment for pole barn builders, as unpredictable price swings may require last-minute adjustments to project budgets.
What Does This Mean For Your 2025 Pole Barn Plans?
While FBi Building’s purchasing department monitors the market and buys extra when it is down, economic volatility driven by changes in trade policies and immigration laws can create uncertainty for builders and homeowners.
Pole barn construction projects might experience delays or price increases, complicating long-term planning. Due to this uncertainty, those looking to build in 2025 should be prepared for potential disruptions and budget overruns. If you have been on the fence, now is the time to lock in your project price, as pricing will most likely increase by Q2 of 2025.
7 Steps to Building a Pole Barn in 2025
1) Design
White or black? Stone or steel wainscotting? Our gallery has hundreds of past projects to inspire your next post-frame building project.
Having a floor plan and general design will help speed up the building process. Try our FREE design online feature to play around with the layout, features, and site placement.
2) Location
Whether you are building on a lot that has been in your family for years or searching for a new lot, you must first purchase your land, develop a site plan, and prepare it for post-frame construction.
3) Get Quotes
Not all post-frame construction companies are equal. As you prepare for next year, it is important to ask your builders questions to ensure you understand what factors may be affecting the quote.
- Do they use 26 gauge or 29 gauge steel?
- What paint is on their steel panels?
- What does their warranty look like?
- Do they hire their crews?
- What is their current lead time?
- How long is their quote valid?
4) Financing
After you understand how much it will cost, getting pole barn financing is next. Interest rates have doubled from 3% in 2021 to 6% today.
We understand interest rates can be a factor in building. However, if the price of materials increases 6-15%, you are gambling on the interest rates to drop enough to cover the difference. By waiting, you risk not only the price but also the timeline of completion.
5) Permitting
Once you sign your contract with FBi Buildings, our pre-construction coordinator will work with you on the necessary building permits. However, be aware of any HOA, driveway, or septic permits you may need to pull during site prep.
6) Site Prep
Each lot is unique, as is each project. Some will require trees to be removed, and others need dirt to level the building pad. Our Project Sales Consultants will help advise you on what you need to do before construction can begin. We also have steps to help you get the ground running.
7) Build
Once the above steps are complete, a Project Manager will coordinate with our local crews to erect your pole barn.
Are You Ready to Build in 2025?
The interplay of tariffs, immigration policy, and labor shortages is likely to create a challenging environment for both pole barn and stick frame construction in 2025. The projected 6-15% increase in lumber prices could push construction costs higher, making it important for potential builders to adjust their budgets and timelines accordingly.
Keeping an eye on these changes and planning for the effects of rising material and labor costs will be key for those looking to construct a pole barn in the near future.
Ready to build? Get a free quote from FBi Buildings.
Do you have more questions that aren’t covered in this article? If you need help designing and planning, please contact FBi Buildings at 800.552.2981 or click here to email us. If you’re ready for a price, click here to request a quote, and a member of our Customer Engagement Team will help you determine the next steps.