Elevated Lumber Tariffs Propelled U.S. Home Prices

SEATTLE (Scrap Monster): The National Association of Home Builders (NAHB) stated that tariffs on Canadian lumber have driven up home prices in the U.S. The Biden administration has delivered a big blow to American home buyers by deciding to double the tariffs on Canadian lumber shipments into the U.S. from 8.99% to 17.9%.

According to Chuck Fowke, Chairman, NAHB, the lumber prices witnessed unprecedented price volatility over the past year, touching a record high of over $1,500 per thousand board feet in May. The lumber prices, at their peak, have added more than $35,000 to the overall prices for a typical new single-family home in the U.S.

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The tripling of lumber prices over the past four months have increased the price of average new single-family home by more than $18,600 since late summer. The current cost of the lumber package for a typical single-family home is approximately $30,000, higher by nearly $13,000 in comparison with the cost during April 2020. Also, only around one-fifth of the new home sales were priced below $300,000, as on October last year.

The NAHB criticized U.S. policymakers for announcing steps such as blocking logging in Alaska’s Tongass National Forest and reducing logging levels in the Black Hills National Forest, saying that such measures would only make lumber less accessible and more expensive.