National Economic Council Hears NAHB Concerns on Lumber
In a special webcast for association leaders and now available to members on NAHB efforts to combat rising lumber prices and supply shortages, NAHB Chairman Chuck Fowke said that Senior Officers held talks with members of the White House National Economic Council (NEC) on Aug. 28 to discuss the impact that soaring lumber prices are having on the housing industry.
"The White House is listening to us," said Fowke. "They are moving and trying to get something done. They understand the importance of our industry."
Since mid-April, the composite price of lumber, per Random Lengths, has soared more than 160%. This surge is adding approximately $16,000 the price of a new single-family home and more than $6,000 to the average new apartment, according to the latest NAHB economic analysis.
During the webcast, NAHB Chief Economist Robert Dietz provided an analysis of the market situation and said that escalating lumber prices in recent months are due to the fact that there is not enough domestic production. Many mills reduced production due to stay-at-home orders and social distancing measures enacted by state and local governments at the onset of the coronavirus pandemic. Mill operators projected that housing would be adversely affected by the crisis and anticipated a large drop in demand. But housing weathered the storm much better than was predicted, and demand for lumber has accelerated.
The extreme lumber price volatility has been exacerbated by tariffs averaging more than 20% on Canadian lumber imports into the U.S. market.
Seeking Action at the Highest Level
In addition to the Senior Officers meeting with the White House NEC, NAHB has reached out to President Trump, Commerce Secretary Ross and U.S. Trade Representative Lighthizer urging the administration 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 U.S.