NAHB Airs Concerns Over Lumber Prices
WASHINGTON, DC — Escalating lumber prices coupled with supply shortages are raising growing concerns among housing industry officials, who contend that the higher costs are impacting home builders and could lead to a slowdown in new construction.
Senior officers and staff from the National Association of Home Builders recently conducted a 30-minute virtual meeting on the subject with U.S. Commerce Dept. Secretary Wilbur Ross on to discuss the growing problem that the lumber increases are having on the housing industry and broader U.S. economic recovery.
According to the Washington, DC-based NAHB, lumber prices have skyrocketed more than 170% since mid-April, and, as of September, the residential construction industry had absorbed the largest four-month increase in lumber prices since such data was first recorded in 1949. NAHB Chief Economist Robert Dietz told Ross that the lumber price spike has added more than $16,000 to the price of a typical new single-family home and $6,000 to the price of an average new multi-family unit.
“Historic traffic numbers have builders seeing positive market conditions, but many are worried about rising costs and delays for building materials, especially lumber,” said NAHB chairman Chuck Fowke. “More domestic lumber production or tariff relief is needed to avoid a slowdown in the market in the coming months.”