Lumber is becoming a key topic as the National Association of Home Builders (NAHB) and the American Lumber Coalition voice concerns regarding the factors contributing to challenges in the U.S. housing market.
On Monday, Fox Business Correspondent Kelly Saberi highlighted that, according to the NAHB, the uncertainty around tariffs and the ongoing fluctuations in timber prices are part of the problem.
Currently, the U.S. imposes a 14.5% anti-dumping and countervailing duty on imported Canadian coniferous wood, but it could rise to nearly 35% later this year.
The NAHB estimates that Canadian coniferous wood constitutes about 85% of U.S. imports and nearly 25% of the domestic supply.
NAHB CEO Jim Tobin commented on the situation, saying, “Aligning with President Trump’s goal of achieving fair trade will help boost domestic production, but until that happens, we require a consistent and affordable wood supply without excessive investment requirements.”
Saberi noted that the U.S.-based timber coalition claims the narrative around timber prices is shifting. There has been a dramatic 67% drop in the price of random-length lumber from May 2021 to this past April, with the price settling around $442 per 1,000 board feet as of late May. Meanwhile, new home costs have surged by 21%.
Zoltan Van Heyningen, the executive director of the U.S. Lumber Coalition, explained, “All costs—from regulatory to land and builder profitability—have increased, significantly impacting housing affordability. Lumber prices are just one piece of this bigger puzzle.”
Additionally, the U.S. Lumber Coalition has criticized Canada, claiming that ongoing unfair trade practices from Canadian timber producers have detrimental effects on U.S. lumber firms and their associated communities.
John Kalabich, owner of Acme Lumber in Chicago, mentioned that he has experienced relative stability over the past year, in large part due to the Canadian wood regulations. However, he has also detected a downturn in demand for smaller repair jobs and costly construction work.
According to recent data from the U.S. Census Bureau, single-family home starts decreased by 2.1%, reaching a seasonally adjusted annual rate of 927,000 from March to April.
In April, new single-family home sales were seasonally adjusted at 743,000, while existing home sales reached 3.63 million.
