Key materials at risk
| Material | War impact | Why it matters |
|---|---|---|
| Aluminum | Gulf produces 9% of global supply; smelters rely on imports through Hormuz | Windows, siding, wiring |
| Steel | Energy-intensive production + logistics disruptions | Structural framing, rebar |
| Copper | 42% of U.S. copper goes to construction; sulfur supply disruptions threaten production | Wiring, plumbing, HVAC |
| Cement | Highly energy-intensive; fuel prices pass through quickly | Foundations, driveways |
Why energy drives construction costs
Energy cost rises pass through to quarrying, calcination, smelting, and transport. This makes energy the primary channel from geopolitics to construction budgets. Aluminum inventories are typically limited to a few weeks, so even a short disruption can tighten global availability.
What happens to new housing
Developers facing higher construction costs may delay or cancel new projects because profit margins become uncertain. Over time this reduces the supply of new housing entering the market, which can push up both purchase prices and rents.
Sources: Baker Donelson, Newsweek, Roofing Insights