Association Urges Action on Lumber Supply Shortages
Nearly 100 Republican and Democratic lawmakers on Oct. 20 sent a letter to President Trump seeking urgent action on lumber supply shortages. Lumber shortages have resulted in unprecedented price spikes in recent months that are threatening the housing industry and economic recovery.
The Dallas BA took a leading role in rallying support for the letter by securing Rep. Kenny Marchant as one of the leading signatories. “These sharp increases are challenging, especially in light of the ongoing housing affordability crisis,” the congressional letter stated. “The National Association of Home Builders (NAHB) estimates the recent spike in softwood lumber costs has caused the price of an average new single-family home to increase by $16,148 since April 17. The market value of the average new multifamily home has increased by $6,107 over the same period.”
The letter adds that housing can create jobs and boost the economy, but in order to do so, our nation’s leaders must address the rising costs of lumber and other building materials. Lawmakers called on the administration to “bring all stakeholders to the table and work to find a solution to address lumber scarcity and subsequent price spikes to ensure everyone’s needs are met.”
“He’d never ask for it, but Director of Government Affairs David Lehde deserves a ton of credit,” said Dallas BA Executive Officer Phil Crone. “David is a former Congressional staff member who knows how to get these efforts rolling. He and several of our members along with NAHB really came through for the housing industry here.”
This is the latest action by NAHB to urge Congress and the administration to address this urgent issue.
- In August, letters were sent to President Donald Trump, Commerce Secretary Wilbur Ross and U.S. Trade Representative Robert Lighthizer calling on the administration to take prompt action regarding soaring lumber prices and supply shortages that are harming the housing sector and the economy.
- A similar message was sent to the U.S. Lumber Coalition with a request to work together to address shortages in the lumber supply chain caused in part by the COVID-19 pandemic.
- At the end of August, NAHB Senior Officers held talks with members of the White House National Economic Council to discuss the impact that soaring lumber prices are having on the housing industry and to press for immediate action.
- At the end of September, NAHB leadership reiterated strong concerns regarding the lumber supply situation in a virtual meeting with Commerce Secretary Ross.
Based on the lumber price trend over the past month, the Association’s ongoing efforts appear to be showing positive results. Lumber prices are currently roughly $750 per thousand board feet — down nearly 20% from their mid-September peak but still far too high. NAHB will continue working on all fronts to find solutions that will ensure U.S. home builders have access to a stable supply of lumber at reasonable prices to keep housing affordable for hardworking American families.
“We appear to be over the peak in terms of lumber pricing,” Crone said. “However, a long term trade deal is still needed to stabilize prices and ensure producers don’t take advantage of the crisis.”