The National Home Builders Association (NAHB) sent a letter to President Joe Biden urging the administration to help with fluctuations in lumber prices and disruptions in the materials supply chain.
The NAHB has called on the Biden administration to take three main initiatives:
- Increase the volatility of efforts in the lumber market, which has seen spot prices soar by more than 25% in the past month
- Solve supply chain bottlenecks for building materials and supplies that cause significant delays and keep home prices nearly 20% higher than they were year-over-year ‘other
- Develop a new softwood lumber agreement with Canada that will end tariffs on lumber shipments to the United States
“Housing demand remains strong and residential construction is expected to remain at its current rate through 2023,” NAHB Board Chairman John C. Fowke said in the letter. âFor these reasons, the NAHB remains committed to doing its part to ensure that housing remains a key component of America’s socio-economic opportunities, creating jobs and ensuring that the U.S. economy continues to move forward. However, we cannot do this without your help on the lingering lumber and supply chain crises. “
The NAHB reported that softwood lumber product price changes that occurred between April 17, 2020 and July 8, 2021 added $ 29,833 to the price of an average new single-family home.
In early August, US Senators Jerry Moran and Jeanne Shaheen, as well as US Secretary of Commerce Gina M. Raimondo met with stakeholders involved in the residential construction supply chain, including the timber industry, advocates of affordable housing and the residential construction industry to discuss the supply chain. disruption, price volatility, shortage of available housing and potential areas for cooperation among stakeholders.
âThe volatility of the lumber market is preventing hundreds of thousands of potential buyers from realizing the American dream of homeownership,â said Senator Moran. “Supply chain shortages caused by the pandemic have driven up the price of building and buying homes, and the threat of increasing countervailing duties on some lumber imports from Canada threatens to worsen the situation. “