Tariffs on Softwood Lumber Imports from Canada Pushes Up U.S. Housing Prices
Rubber and Wood | 2018-06-25 07:57:19
The lack of affordable homes has limited starts. The sharp rise in material costs, including jump in lumber prices have become big burden on the industry.
By Paul Ploumis
SEATTLE (Scrap Monster): The U.S. builders believe that Trump’s tariffs have added up to wood costs, thereby resulting in significant jump in prices of U.S. homes.
According to U.S-based National Association of Home Builders (NAHB), the tariffs imposed on Canadian softwood lumber have pushed up the cost of single-family homes in the U.S. by approximately $9,000. Also, the average price of multi-family unit has gone higher by at least $3,000 since the imposition of hefty tariffs by the Trump administration.
In a statement issued by NAHB, Randy Noel, Chairman noted that the Association has already informed Commerce Secretary Wilbur Ross that lumber prices are most likely to see further hike in future, mainly triggered by the tariffs on Canadian softwood lumber imports. This would further hurt housing affordability in markets across the nation, Noel said.
Further, Noel urged the Commerce Department to re-launch negotiations with Canada in finding a long-term solution to the trade dispute. This in turn would ensure availability of affordable houses for hard-working American families, NAHB noted. Meantime, David MacNaughton, Canadian ambassador to the U.S wrote to 170 House members that current lumber shortages and sharp rise in prices for U.S. homes could have been avoided if the Commerce Department had signed the deal last fall. These 170 members had urged Wilbur Ross to reopen talks with Ottawa on softwood lumber tariffs.
ALSO READ: B.C. Lumber Production Recorded 3% Decline in First Quarter 2018
The builders around the U.S forecast construction of almost 910,000 single-family houses this year. Also, the production is expected to surpass 1 million by 2020. The lack of affordable homes has limited starts. The sharp rise in material costs, including jump in lumber prices have become big burden on the industry. As per estimates, lumber prices in the U.S. have surged higher by 62% since January last year. Incidentally, the U.S. is believed to get nearly one-third of its lumber from Canada.
