NAHB sent a letter to President Trump expressing the housing industry’s growing concern and seeking prompt action regarding soaring lumber prices and supply shortages that are harming the housing sector and the economy.
NAHB is urging the White House to play a constructive role to alleviate this growing threat to housing and the economy by calling on domestic lumber producers to ramp up production to ease growing shortages and making it a priority to work with Canada on a new softwood lumber agreement that would end tariffs averaging more than 20% on Canadian lumber shipments into the United States.
As the nation fights to rebound from the effects of the COVID-19 pandemic, housing has been a bright spot for the U.S. economy, particularly single-family construction, with permits running 3.4% higher during the first half of 2020 compared to the first half of 2019.
However, builders are seeing shortages of lumber resulting in an 80% increase in lumber prices since mid-April. Framing lumber prices reached a record high in late July, while oriented strand board prices have increased 138% over the past year. These sharp increases are unsustainable, particularly in light of the housing affordability crisis.
NAHB’s letter to the White House stressed that housing can do its part to create jobs and lead the economy forward; but in order to do so, we need to address skyrocketing lumber prices and chronic shortages.
NAHB recently sent a similar message to Commerce Secretary Wilbur Ross, U.S. Trade Representative Robert Lighthizer and Zoltan van Heyningen, executive director of the U.S. Lumber Coalition.