Lawmakers Echo NAHB Concerns on Rising Lumber Prices, Tariffs

Material Costs
Published

During a House trade hearing on March 30, Rep. Kevin Hern (R-Okla.) echoed NAHB concerns that rising lumber prices are hurting housing affordability and the Biden administration needs to act swiftly to enter into negotiations with Canada on a new softwood lumber trade agreement.

In an exchange with U.S. Trade Representative Katherine Tai during a House Ways and Means Committee hearing on the Biden administration’s 2022 trade policy agenda, Kern cited NAHB data in stating that the “most recent (lumber price) spikes have added more than $18,500 to the price of an average new single-family home and nearly $8,000 to the price of a multifamily home. These volatile price increases are pricing families out of the American dream of owning a home and beginning to affect the economic practicality for investment in new projects.”

While questioning Ambassador Tai, Hern added that “this is obviously having an increasingly negative impact on housing affordability and we still don’t have a softwood lumber agreement with Canada. As best as we can tell, we aren’t even at the negotiating table on this and despite many assurances that both sides are eager to resolve this problem. Could you explain what the progress is and how we are going to resolve this critical issue?”

Ambassador Tai responded as follows: “Our dispute with Canada over softwood lumber and how they produce theirs has been one of these longstanding problems in our relationship and it goes to a fundamental incompatibility between our economic systems not unlike what we have with dairy. So this is an issue that is baked into our close and important relationship with Canada economically over time.”

Tai added that “it’s our view that our trade remedy laws are working as they should. Nevertheless, in recognizing the disruptions in the market, I frequently discuss softwood lumber issues with my Canadian counterpart. We as an administration are open to resolving our differences with Canada over softwood lumber. But that does require both of us to come to the table with a willingness to address the underlying difficulties in the compatibility of our systems. That door is always open, but it does takes two to tango.”

Rep. Steven Horsford (D-Nev.) also spoke about how soaring housing costs are hurting his constituents and the need to lower lumber tariffs to ease affordability woes. As part of the hearing, NAHB submitted a statement for the record which included the following:

“Resolving the long-running dispute with Canada over the trade in softwood lumber and addressing the steel and aluminum tariffs must be a top priority of Congress and the administration. Building affordable housing depends in large part upon a stable and affordable supply of building materials.

“Many parts of the country are mired in a housing affordability crisis. Protectionist trade policies that artificially increase the cost of key building materials exacerbate the problem while doing little to expand economic opportunity. Congress must work to ensure our trade policy agenda is both fair to domestic industry and considers the potential impacts on American consumers.”

View the exchange between Rep. Hern and Ambassador Tai.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Oct 09, 2025

3 Ways to Utilize Construction Site Surroundings to Optimize Design

Home design isn’t just about color swatches and backsplashes. Architecturally, building professionals can look toward climate responsive design and ambient design, which both involve using the elements around a home to the client’s advantage.

Economics

Oct 09, 2025

Remodeling Market Sentiment Improves in Third Quarter

NAHB released its NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter, posting a reading of 60, up one point compared to the previous quarter. With the reading of 60, the RMI remains solidly in positive territory above 50, but lower than it had been at any time from 2021 through 2024.

View all

Latest Economic News

Economics

Oct 07, 2025

Minority-Owned Residential Building Firms Continue to Rise

The share of minority-owned new residential builders and remodelers has more than doubled since the Great Recession, with noticeable gains from 2017 to 2022. Nevertheless, when compared to the overall U.S. population, minority-owned firms continue to be underrepresented within both housing sectors.

Economics

Oct 06, 2025

Shorter Apartment Construction Time in 2024

The average time needed to complete construction of a multifamily building after obtaining authorization edged down in 2024, according to the 2024 Survey of Construction (SOC) from the Census Bureau. On average, it took 19.6 months from permit to completion, about 0.3 months shorter than in 2023.

Economics

Oct 03, 2025

Supply-Side Cost Pressures Drove Housing as Inflation Leader in 2024

Though the rate of inflation peaked in June 2022, consumer prices continued to increase throughout 2023 and 2024 as inflation drove further price growth, according to 2024 CPI review from the Bureau of Labor Statistics.