Factors Affecting Residential Construction
SDHBA State Representative
Jordan Hefner
International Builders’ Show Report
Orlando, Florida | February 14–20, 2026
I attended the International Builders’ Show in Orlando, Florida from February 14–20, 2026, representing the South Dakota Home Builders Association in several committee meetings and leadership discussions. Meetings attended included the Building Materials Subcommittee, the Construction Liability, Risk Management, and Building Materials Committee, the Residential Construction Performance Guidelines (RCPG) Work Group, the Taxation and Trade Subcommittee and the State Representatives meeting. These sessions provided updates on national construction trends, legal developments affecting builders, building material markets, and ongoing initiatives within the National Association of Home Builders.
Building Materials Subcommittee
The Building Materials Subcommittee meeting focused on economic trends affecting the residential construction industry, as well as legislative and tariff issues influencing building material pricing. It was reported that approximately 7 percent of building materials used in residential construction are imported. Current lumber pricing was noted at approximately $494 per thousand board feet, while overall building material prices increased approximately 2.9 percent during 2025. Canadian lumber production continues to decline, which may have future implications for supply and pricing within the U.S. housing market.
Several tariff programs affecting construction materials were discussed, including Section 232 and Section 301 tariffs as well as tariffs enacted under the International Emergency Economic Powers Act. These policies continue to influence pricing on imported materials, and ongoing litigation surrounding certain tariffs could impact how they are implemented in the future. An update was also presented regarding research on 3D printed residential housing conducted by Home Innovation Research Labs. The research included both technical and market studies involving several manufacturers. Consumer perception toward 3D printed homes was reported to be largely neutral, indicating that while the technology continues to develop, widespread adoption may still require additional market acceptance and refinement.
Construction Liability, Risk Management, and Building Materials Committee
The Construction Liability, Risk Management, and Building Materials Committee meeting addressed several legal developments and risk management issues currently affecting builders. One topic discussed was the significant increase in Fair Housing Act and ADA-related claims. Builders were encouraged to maintain strong compliance and documentation practices to reduce potential legal exposure.
Construction defect litigation was also discussed during the meeting. Legal professionals noted that defect-related lawsuits are increasing and are often settled through insurance payouts rather than lengthy court proceedings. Examples of litigation involving homeowner associations and developers were reviewed to illustrate how defect claims can evolve into complex legal disputes involving multiple parties.
The committee also hosted a panel discussion on Type 1L blended cement, which is increasingly being used as a lower-carbon alternative to traditional Portland cement. Experts discussed similarities in compressive strength and air content compared to traditional cement, while also noting concerns related to finishing timing, bleed water management, curing conditions, and variability among mix designs.
Residential Construction Performance Guidelines (RCPG) Work Group
The Residential Construction Performance Guidelines Work Group met to review the revision process for the 7th Edition of the Residential Construction Performance Guidelines. These guidelines serve as a widely used reference within the residential construction industry to help define reasonable expectations for workmanship and performance standards between builders and homeowners.
During the meeting, the work group reviewed the current revision process, including progress made to date and the timeline for completing updates. Technical feedback submitted by builders and industry professionals is currently being reviewed, and several key discussion items were presented during the session.
The group also discussed strategies for improving how the guidelines are utilized and promoted throughout the industry. Participants discussed ways to better educate builders on using the guidelines as a resource for establishing expectations and addressing common construction performance questions.
Taxation and Trade Subcommittee
The Taxation and Trade Subcommittee meeting focused on federal tax policy, tariffs, and housing affordability issues affecting the residential construction industry. Discussions included the impact of tariffs on building materials, including increases in metal pricing and copper tariffs that have contributed to rising costs.
The committee also reviewed litigation related to tariffs enacted under the International Emergency Economic Powers Act. Depending on the outcome of these legal challenges, alternative trade authorities could potentially be used to maintain similar tariff structures.
Additional discussion addressed potential federal tax legislation expected in 2026. It was noted that a bipartisan tax bill appears unlikely given narrow political margins, though a single-party tax bill may still be possible. Housing policy discussions included incentives for first-time homebuyers and potential revisions to 529 savings plans that could allow unused education savings funds to be used toward the purchase of a first home.
State Representatives Meeting
The State Representatives meeting provided an opportunity for representatives from state home builders associations to discuss legislative priorities, advocacy efforts, and current industry issues affecting builders across the country. Discussions included federal regulatory topics affecting residential construction as well as ongoing legislative sessions occurring within individual states. These discussions allow state associations to share information and coordinate on policy issues that may impact builders nationally while ensuring that concerns from individual states are communicated to national leadership.
Conclusion
The meetings and committee sessions held during the International Builders’ Show provided valuable insight into the economic, legal, and regulatory factors currently affecting the residential construction industry. Discussions surrounding building material markets, tariff policies, construction liability trends, and revisions to industry performance guidelines highlighted several areas that will continue to shape the industry.
Participation in these meetings allows the South Dakota Home Builders Association to remain actively engaged in national industry discussions and ensures that members remain informed about evolving trends and policy developments affecting residential construction.
