U.S. Housing Market Badly Impacted by Rising Lumber Tariffs: NAHB

SEATTLE (Scrap Monster): The National Association of Home Builders (NAHB) stated that the U.S. housing market has been badly impacted by rising lumber tariffs. The volatility in lumber prices has been a huge drag on the residential construction sector during the pandemic period.

The NAHB expressed disappointment over the Department of Commerce’s recent move to double the tariffs on lumber imported from Canada from 8.99% to 17.9%. The proposed hike in tariffs would result in huge increase in tax on American homebuyers and renters, as they drive up lumber prices.

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The lumber prices had touched all-time peak of $1,495 per thousand board feet during the previous year, which in turn pushed up the cost of an average new single-family home by almost $36,000. Although the prices have receded from the highest level, it has begun to rise again. The framing lumber composite price surged higher by 10% in early-December 2021, NAHB noted.

The number of single-family built-to-rent construction starts, which totalled around 16,000, hit the highest quarterly volume during Q3 last year.

Meantime, NAHB urged trade officials from both countries to reach a long-term solution to the lumber trade dispute.