With tariffs on imported materials like steel, aluminum, and lumber on the rise, construction and repair costs are rapidly increasing throughout the country. For HOAs, co-ops, and community associations, this antagonizes an ever present challenge: how can you budget effectively when prices are anything but predictable? At Building Reserves, we understand the key lies in flexible, progress-driven planning. A professionally conducted reserve study offers a strategic framework that adapts to economic instability and guides your board in confidently making informed decisions. By working proactively, your community can stay ahead of rising costs and attain long-term financial peace of mind, no matter what the market throws at you.
Recent international tariffs and constant supply chain disruptions have caused material prices to surge, rippling through the construction industry and impacting everyone it touches. As reported by Reuters and The Wall Street Journal, to name a few, tariffs on important materials such as steel and aluminum have significantly driven up the cost of building and repair projects across the U.S. For community associations, this means that everything from roofing and HVAC systems to paving, and common area renovations now comes with a growing price tag. Even a 10–15% increase can throw off an association’s budget, leading to funding shortages and delayed projects. Without a solid, forward-looking financial strategy, associations may find themselves scrambling to cover costs that were once predictable.
A reserve study is far more than a financial prediction; it’s a comprehensive, long-term strategy for your community’s financial wellbeing. At Building Reserves, we design studies that go beyond the basics. Here, we incorporate realistic, inflation-adjusted cost projections and scenario modeling to anticipate the impact of rising tariffs and market shifts all while offering customized funding plans tailored to your association’s unique needs and desires. This proactive approach empowers you to plan with confidence and make informed decisions without resorting to last-minute assessments on residents when costs suddenly rise. With the right reserve study, your community is protected from a turbulent environment.
Flexibility is paramount in our transforming economic climate. This is precisely where our reserve studies truly stand out. With Building Reserves, you don’t just receive static values and stagnant commentary; we offer dynamic “what if” scenario planning that encourages your board to explore your potential. What if roofing costs jump 20% in the next five years? What if supply chain delays push your paving project out a year? With insight like ours at your fingertips, you can make educated alterations to reserve funding, communicate honestly with residents, and avoid the financial stress of special assessments and high-interest loans. Scenario planning with Building Reserves transforms uncertainty into peace of mind.
Funding Flexibility: one of our clients – an 82-unit townhome association – has a phased asphalt shingle roof replacement project planned over the next 4 years (2025-2028). 2024 was their third reserve study update with us, and preventative maintenance measures have kept their roofing project on schedule.
As asphalt shingle roofs are comprised of many internationally sourced materials, tariffs could increase the cost of this townhome association’s roofing project by 10-20%. With all Building Reserves reserve studies, we build in contingencies for fluctuating costs. This association got a recommended funding plan from us with a contingency of at least 28% in the first 4 years of their reserve study, protecting them from these tariffs through the end of their roof replacement project.
Every year, it will be crucial for them to update their funding plan regularly with the bids they receive to ensure that they can maintain a positive reserve balance. Using these bids and our brand new excel file, they can edit their actual phased roof replacement costs and use our new automatic funding tool to create brand-new customized funding plans. Even between reserve study updates, they have flexibility in their funding plan to prepare for the next year’s budget.
Given the uncertain impact of tariffs on all construction projects, a Reserve Study Update Without Site Inspection (Level III) is a cost effective and powerful tool to help this association prepare for rising costs. They can plan for their future with updated repair and replacement costs, updated interest rates, and they can capture work they have completed in their expenditure recommendations.
This is just one of the many ways that Building Reserves can help you prepare for changing economic conditions. See another example of how our excel file and priority system were used to help an association avoid a special assessment in this Case Study video tutorial.
At Building Reserves, we believe reserve planning shouldn’t be a one-time transaction; it should be a lasting relationship where we partner together for the betterment of your community. Our commitment to being more than just a provider sets us apart. We don’t just deliver a convoluted document and disappear. Instead, we offer ongoing guidance as market conditions shift, flexible funding plans aligning with your board’s goals, and personalized attention from your first contact to beyond the report shipment. Our team of experienced engineers ensures your plan stays relevant and responsive through regular strategic updates, so you're never caught by surprise. Reserve planning can seem daunting, but with Building Reserves, this becomes an obtainable goal.
No two communities are the same, and neither are their financial challenges. Perhaps you're feeling the pressure of rising construction costs, uncertain if your current reserves are truly sufficient, or struggling to clearly communicate funding needs to your residents. No matter the situation, Building Reserves is here to help. We offer practical guidance, functional communication tools, and data-driven strategies made custom to your specific situation. Let’s take the guesswork out of reserve planning. Book a free discovery call today and learn how we can help your community budget with confidence.
Did you know we provide ongoing support? Contact us for a discovery call and let’s explore how we can strengthen your community together.
Written by James Newby, Architectural Engineer
