While lumber prices have caused a $36,000 addition to the average price to a new single-family home, the United States Commerce Department desires to double lumber tariffs on Canadian lumber shipments into the U.S. from 9 percent to 18.32 percent.

Part of the lumber crisis goes back to lumber mill curtailments that went on throughout 2020 due in part to the pandemic. Besides lumber prices skyrocketing the cost of new home builds, there has been a $13,000 increase in the market value of a multifamily unit.

 

"Lumber prices are already up more than 300 percent from a year ago," stated NAHB Chairman Chuck Fowke, "If the administration's decision to double tariffs is allowed to go into effect, it will further exacerbate the nation's housing affordability crisis, but even more upward pressure on the price of lumber and force millions of U.S. home buyers and lumber consumers to foot the bill for this ill-conceived protectionist action."

The housing market has become the nation's number one economic growth indicator since the pandemic forced people into their homes. Meanwhile, the White House announced details of a plan to produce preserve and retrofit 2 million affordable homes under the American Jobs Plan which calls for labor mandates on projects funded by various programs which would only further cause a rift in the construction industry.

According to Sen. Moran's senate floor speech on lumber, "the reality is that record-high lumber prices are putting the American dream of home homeownership out of reach for hundreds of thousands of potential home buyers and disproportionately harming middle- and low-income families across our nation. At a time when residential home building is booming, it is essential that home builders and consumers have access to the materials they need at competitive prices."

https://nahbnow.com/2021/05/move-to-double-lumber-tariffs-shows-white-house-does-not-care-about-housing-affordability/