Commerce Secretary Promises to Make Lumber Prices a Priority
Gina Raimondo said the International Trade Administration would try to identify the root causes and find a solution.
Commerce Department Secretary Gina Raimondo has promised to make lumber prices a priority.
The pledge came last week in response to a request by Rep. Robert Aderholt (R-Ala.) at a House Appropriations subcommittee hearing.
Describing the home building industry and the housing sector as “struggling,” Raimond said Commerce’s International Trade Administration would try to identify the root causes and find a solution.
The National Association of Homebuilders claimed the statements showed its grassroots lobbying efforts with members is showing results.
Rising prices and supply shortages of lumber and other building materials have crimped the industry.
NAHB has asserted overall lumber prices have tripled, raising the price of a newly constructed single-family home by $36,000 on average and $119 in monthly rents for new apartments.
Oriented Strand Board (OSB) plywood, which accounts for 65% of the load bearing, structural panel market, has risen to $60 a sheet from $8 in March 2020.
At the subcommittee session, Aderholt said prices are continuing to go up overall for lumber but understand there is plenty of lumber that’s being delivered.
NAHB has called on the White House to hold a summit on lumber and building material supply chain issues and to temporarily ease 9% tariffs on Canadian lumber to reduce pricing volatility.
Rising material costs will add to the difficulty home builders will have to raise prices this year, Fitch Ratings predicted in March.
In March, Fitch noted the US Bureau of Labor Statistics’ Producer Price Index for construction materials had risen year-over-year every month since August 2020.
The company’s analysts said they expected the trend to continue as demand remains strong and supply chain issues linger on the materials side.
The materials price hikes could help the owners of existing multifamily properties as would-be first time home buyers find they have to stay put in their apartment from a lack of supply of single-family units and high prices from the lumber cost spike.