Construction Halted on World's Tallest Mass Timber Skyscraper in Milwaukee Due to Rising Tariffs

Sayart / Oct 2, 2025

Construction on what was planned to be the world's tallest mass timber building has been temporarily halted in Milwaukee due to rising tariffs and inflation costs. The developer Neutral announced the pause on its Edison skyscraper project, citing significant increases in construction material costs as the primary reason for the suspension.

According to Neutral CEO Nate Helbach, the residential tower known as Neutral Edison or The Edison has faced substantial cost increases due to recent tariffs and broader inflationary pressures. "Recent tariffs and broader inflation have materially increased key input hard costs," Helbach explained. "Pausing to value-engineer is a difficult but prudent step to safeguard the long-term success of 1005 N Edison. Our focus remains on delivering a resilient, exceptional building for Milwaukee."

The ambitious project, located at 1005 N Edison Street in Milwaukee, was designed to reach 32 stories and stand 375 feet tall (110 meters) upon completion. The building would contain 353 residential units and, if finished as planned, would surpass Milwaukee's current record-holder Ascent to become the tallest mass timber building in the world. The project represents a significant advancement in sustainable construction technology using engineered wood products.

While Neutral has publicly attributed the construction halt to economic factors, local news sources have reported additional challenges including potential cost mismanagement and disagreements with contractor CD Smith Construction. However, the company has dismissed these reports as rumors, according to ENRMidwest. Milwaukee alderman Robert Bauman suggested to the Daily Reporter that the project may have been underfunded from the start, stating, "We appear to have a situation where they underestimated their costs, they started construction anyway, and they suddenly came to a realization the project was underfunded as designed."

The construction pause comes amid broader concerns about the impact of recent tariffs on the building industry. While Neutral has not specified which particular tariffs are affecting the project, the Trump administration has implemented several trade measures that could impact construction costs, including tariffs on timber and other building materials. ENRMidwest reported that the company did not name specific tariffs when discussing the project's challenges.

The Edison building is part of a larger, multi-tower development project master-planned by Michael Green Architecture (MGA), situated just north of Milwaukee's Marcus Performing Arts Center. This ambitious development also includes plans for a 55-story mass timber skyscraper designed by the same studio, though that project remains in its planning phases according to News Atlas. The entire development represents a significant investment in Milwaukee's urban waterfront area.

The design of the Edison building itself is credited to a collaboration between Neutral's in-house design team and Hartshorne Plunkard Architecture. Construction on the project began in June 2025, but it remains unclear when work will resume. Building consultant Thornton Tomasetti still lists a completion date of 2027 on its website, though this timeline may now be subject to revision given the current pause.

The construction halt highlights broader challenges facing sustainable building projects in the current economic climate. The Trump administration recently announced a 30 percent tariff on upholstered furniture, and industry experts have expressed concerns about the potential impacts of various tariffs on sustainable architecture and green building initiatives. The mass timber construction method used in the Edison project represents an innovative approach to sustainable high-rise construction, making the project's completion significant for the broader architecture and construction industry.

Sayart

Sayart

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