Escalating Lumber Prices Hamper Home Owner Dreams
Lumber prices have skyrocketed since mid-April, rising 130% and increasing the cost of a single-family home by more than $16,000. NAHB continues to advocate for increased production to ease the supply shortage and engaging Canada in trade discussions to remove the tariffs on Canadian lumber shipments. But solutions may not come fast enough for prospective home owners who now find themselves scrambling to find alternatives amidst these skyrocketing prices.
John and Teri Goldsmith began the process for building their retirement home in Eastern Tennessee, outside of Knoxville, in February 2020. Their plans were quickly put on hold, however, as the COVID-19 pandemic swept the country because they were afraid they would not be able to sell their current home.
As the market began to pick up, so did the Goldsmiths' hopes of building their dream retirement home. After successfully selling their home at the end of July, the couple settled into a rental property and quickly got to work. Having secured a contractor, qualified for a construction loan and received approval from the architectural committee at their property owners' association (POA), they were ready to break ground in early October.
On Aug. 31, however, the Goldsmiths were faced with yet another challenge. They received an unexpected call from their builder, who — while pricing another project — regretfully informed them that the price of lumber had gone up 100% since the last time he had priced it for them. Both the Goldsmiths and the builder were blindsided by the exponential cost increases, which may now make it impossible for them to complete the process.
John and Teri have begun to research alternatives, including different building methods that may use less materials. But they're concerned the price increases in lumber have expanded to other building materials as well. With no end in sight to the price increases, waiting also becomes a challenge, as the couple is bound to the construction timeline set by the POA, which requires the Goldsmiths to break ground within 45 days of receiving approval and one year to complete the project or face penalties.
The Goldsmiths have been working hard with their contractor on a Plan B because they have already invested $15,000 in permit fees and $10,000 in contractor deposits. This "discovery phase," as John called it, has made planning difficult, as there are still many unknowns out there. But they're hoping there is light at the end of the tunnel.
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
May 23, 2025
Volatile Spring Selling Season ContinuesSales of newly built, single-family homes in April increased 10.9% to a 743,000 seasonally adjusted annual rate from a downwardly revised March number, according to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in April was up 3.3% compared to a year earlier.
May 22, 2025
NAHB Members Cite Impact of Tariff Uncertainty on Home BuildingTariff uncertainty from the Trump administration continues to impact home builders across the country, as builders prepare for potential price hikes and supply chain issues. NAHB members have been sharing the impact that these tariffs are having with media outlets across the United States.
Latest Economic News
May 22, 2025
Existing Home Sales Fall in AprilDespite the brief retreat in mortgage rates and increased supply, existing home sales dropped to 7-month low in April, according to the National Association of Realtors (NAR). This unexpected decline suggests buyers’ activity continues to be constrained by economic uncertainty and ongoing affordability challenges even with improved market conditions.
May 22, 2025
Income Growth Helps Mute Existing Affordability ConstraintsDespite solid income gains and lower home prices, Americans still continue to face major housing affordability challenges, according to the latest data from the National Association of Home Builders (NAHB)/Wells Fargo Cost of Housing Index (CHI).
May 21, 2025
Gains for Multifamily Missing Middle over Last YearThe missing middle construction sector includes development of medium-density housing, such as townhouses, duplexes and other small multifamily properties.