Adobe Stock/Lev
Working in tandem with the National Association of Home Builders (NAHB), nearly 100 Republican and Democratic lawmakers sent a letter to President Trump seeking action on lumber shortages. Supply-side shortages have resulted in unprecedented lumber price spikes in recent months and these spikes are “threatening the housing industry and economic recovery,” according to the NAHB.
The letter highlights NAHB research that estimates spikes in softwood lumber costs have caused the price of an average new single-family home to increase by over $16,000 since mid-April and the value of the average new multifamily home to increase by over $6,000.
“Housing can do its part to create jobs and return the economy to what it was prior to the pandemic, but in order to so, we need to address the rising costs of lumber and other building materials,” the letter to the President states. “We understand that in the current environment, producers of building materials face a range of complications in getting their product to market. COVID-19 has shut down sawmills and severely disrupted the supply chain.
The letter calls for the administration to bring all stakeholders to the table in order to work and find a solution to address lumber scarcity and price spikes. Lumber prices are currently roughly $750 per thousand board feet, down nearly 20% from their mid-September peak but still high compared to mid-April.
The letter is the latest action by the NAHB to urge Congress and the administration to address rising lumber prices. The NAHB initially sent letters to President Donald Trump, Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer in August urging prompt action regarding lumber prices and supply shortages. The association held talks with Secretary Ross in September and reiterated its message regarding the importance of action in response to rising lumber prices. The NAHB has advocated for domestic producers to increase production and stressed the importance of returning to discussions with Canada on a new softwood lumber agreement. A new softwood lumber agreement could end tariffs averaging more than 20% on Canadian lumber shipments into the United States.
