Last year’s rise in prices was just the start. When the pandemic takes hold, some saw mills shut down or cut production as they anticipate decreased demand. Jannke, a principal at Forest Economic Advisors, told the New York Times that a reduction in the supply of Canadian lumber also contributed to the rise in prices.įast forward to 2020. It’s fair to say Trump’s tariffs contributed to that rise, experts told PolitiFact.

The price hovered just below $400 per thousand board feet in early 2017, and then rose to $600 by summer 2018. They can range from $300 to $600 per thousand board feet when in stable economic times. Lumber prices have a history of being volatile, experts told PolitiFact. and Canada had a 10-year trade pact that expired at the end of 2016.ĭavid Logan, director of tax and trade analysis for the National Association of Home Builders, wrote in March 2017 that 'failure to reach a new (trade) agreement is the primary catalyst of market-wide price increases.'Ī month later, the Trump administration announced tariffs of 20% on Canadian lumber and up to 24% on specific lumber companies. Supply chain disruptions due to the pandemic compounded the problem and drove prices even higher,' she tweeted on July 14.īy the time Trump imposed tariffs on lumber in 2017, prices were already on the rise because of uncertainty surrounding an expired trade agreement. 'The Trump Administration's high tariffs on Canadian lumber drove prices higher. She responded by elaborating on her comments in a tweet. Later that day, a Twitter user challenged Adams’ explanation. So would you tell us why you believe the recent inflation trends are temporary as the economy reopens and what other factors are playing into the upward pressure on prices?' 'So I’m hoping you can help us put some of these concerns to bed. And while lumber prices can be tied to the previous administration’s actions, I know that many are still concerned about the rise in core prices.' 'My local housing partnership had to pause construction of an affordable housing site because of a funding gap caused by the spike in lumber prices.

And while winding up for her question, she said a rise in lumber prices 'can be tied to the previous administration’s actions.' Alma Adams, a Charlotte area Democrat, raised the issue when questioning Federal Reserve Chairman Jerome Powell about inflation during a committee meeting on July 14.Īdams wanted to know why Powell believes the recent inflation trends are temporary. It's a reminder to keep a close eye on expenditures as businesses will need to be increasingly flexible as times get less predictable.A North Carolina congresswoman says former President Donald Trump is partly to blame for an increase in lumber prices. Still, with the pandemic expected to worsen in the colder months, it provides an ominous example of how quickly external issues (like a pandemic) can affect price. According to NAHB, the increase prices out about 2.1 million households from the market.īuilders use more softwood lumber than remodelers, so the impact of the increase will be less felt by remodelers. Over the same time, single-family home prices increased $14,116 and multifamily by $5,322. By August, those expenses had risen to $28,765 and $10,403, respectively. In April, builders of single-family homes were spending about $17,000 on softwood lumber products per home, and multifamily builders were spending around $6,000. There were some in the industry who hoped coronavirus would somehow help material prices, but a comprehensive look at lumber prices by NAHB-which included accounting for prices variances between sawmills, wholesalers, and retailer-discovered that what new home builders are paying for softwood lumber products skyrocketed between April in August. Now, months into the pandemic, those fears are becoming reality as new estimates from the National Association of Home Builders show that a spike in softwoof lumber products prices has resulted in major price hikes in new single-family and multifamily homes. Coming into this year 'building material prices' was the no. The Trump Administration's tarriffs in recent years have already disrupted the availability of materials like tile, steel, and aluminum products, among others. Even before the pandemic put America on pause, contractors have been worrying about the prices of building materials.

Lumber prices skyrocket