Lumber Prices Continue to Price Home Owners — and Builders — Out of the Market
Lumber prices increased 14.9% in August, marking the largest four-month gain since such data was first recorded in 1949 and the second-largest gain since seasonally adjusted data became available in 1975. Such a sharp increase has put unnecessary pressure on home owners and builders alike to figure out how to close the gap.
Former NAHB Chairman Randy Noel, a custom home builder from LaPlace, La., received a lumber quote early this month for more than $28,000 — twice what he had paid for the same lumber on a comparable project in February 2019. Oriented strand board alone, which Noel's company uses frequently in its projects, had increased from $7.50 per sheet to $26 per sheet.
Because the homes have already been sold, Noel is looking toward alternative building materials, such as steel, to help minimize the cost increases. Not all builders will be able to close the gap, though.
"I know builders who have had to call customers and give them their deposit back and say, 'I can't build your house because of the price of lumber,'" he shared. "People already have their loan secured and can't increase the price."
Appraisals are likely to compound that issue, Noel added, as comparable sales of existing homes aren't increasing sharply enough to factor into appraisers' equations. Pent-up demand is also driving up the price of lots, which will need to be factored into home prices going forward as well.
The best immediate-term solution Noel sees on the horizon is to remove tariffs on Canadian lumber. "If lumber mills are struggling to keep up, [U.S. Commerce] Sec. Ross can remove tariffs temporarily to keep lumber prices from skyrocketing," he stated.
NAHB continues working on all fronts to find solutions that will ensure U.S. home builders have access to a stable supply of lumber at reasonable prices to keep housing affordable for hardworking American families.
Share Your Lumber Story
NAHB would like to hear how rising lumber prices, and the limited availability of lumber, are affecting your business and the impact on housing affordability. For example, missed closing opportunities, increased costs, buyers being priced out of the market, etc. This will help us further illustrate to the Administration and Congress why a plan to address the lumber crisis is urgently needed. Share your story here.
Latest from NAHBNow
Sep 26, 2025
Apply Today: NAHB Awards Programs Open Through Oct. 6Don't miss your chance to enter NAHB's prestigious awards programs, which highlight the best and brightest in the home building industry in a variety of categories.
Sep 25, 2025
5 Key Principles for Avoiding Costly Pitfalls in Construction and RenovationIn today’s competitive construction landscape, where deadlines are tighter and budgets are scrutinized more than ever, precision and efficiency are critical to staying profitable and maintaining your client's trust. By focusing on five key principles, contractors and remodelers can dramatically reduce these risks while improving overall ROI.
Latest Economic News
Sep 24, 2025
New Home Sales Post Unexpected Large Gain in AugustA modest drop in mortgage rates led to a surprisingly large jump in new home sales in August, though the figure may be revised downward in the coming month.
Sep 24, 2025
Single-Family Construction Loan Volume Falls BackThe NAHB Land Acquisition, Development and Construction (AD&C) loan survey in the second quarter reported tightening credit conditions for builders. Consequently, FDIC data reporting the outstanding volume of 1-4 family construction loans fell in the second quarter.
Sep 23, 2025
Beyond the Official Unemployment Rate: A Deep Dive into U.S. UnemploymentIn August, the official, or standardly referenced, unemployment rate rose slightly to 4.3%, up from 4.2% in July. This marks the highest level in nearly four years, though it remains historically low.