Currently Reading

How Tariffs on Canadian Lumber Will Hurt U.S. Housing

Advertisement
NAHB

How Tariffs on Canadian Lumber Will Hurt U.S. Housing

NAHB Policy Briefing | NAHB is working with the Biden administration to engage Canadian trade officials in negotiations; record starts for built-to-rent homes


By National Association of Home Builders January 6, 2022
Canadian lumber tariffs will hurt housing
The U.S. Commerce Department proposed with its next administrative review to double the tariffs on Canadian lumber imports from 8.99% to 17.9%. | Photo: stock.adobe.com
This article first appeared in the January 2022 issue of Pro Builder.

Lumber price volatility has been the single biggest drag on the residential construction industry during the COVID-19 pandemic. That’s why the National Association of Home Builders (NAHB) was so disappointed when the Commerce Department moved forward in late November with its next administrative review to double the tariffs on Canadian lumber imports from 8.99% to 17.9%. 

Increasing the tariffs acts as a huge tax increase on American homebuyers and renters, who experience higher housing costs as Canadian lumber tariffs drive up the cost of lumber. This comes as millions of American households are already paying too much of their income for housing.

It’s no secret to the Commerce Department that the nation’s home builders are dealing with supply chain disruptions that have driven up the cost of lumber, steel, copper, and other key building materials. At one point in 2021, the price per thousand board feet of lumber reached an all-time high of $1,495, according to wood industry price and news service Random Lengths, and pushed up the cost of an average new single-family home by almost $36,000. 


RELATED


After relaxing from record highs in the fall—though still above pre-pandemic record highs—lumber prices have begun to rise again. The framing lumber composite price jumped 10% in early December and lumber futures increased nearly 20%, going above $900 per thousand board feet as of Dec. 3.

NAHB is working with the Biden administration in an effort to achieve less burdensome tariffs and is urging the administration to engage Canadian trade officials in negotiations to reach a long-term solution to the trade dispute.


Record Starts for Single-Family Built-to-Rent Homes

Many households are looking for the space and privacy of a single-family home, but not all can overcome the barriers to homeownership, such as high list prices and down payment requirements. In response to rising affordability concerns, the number of single-family built-to-rent construction starts reached its highest quarterly volume on record during the third quarter of 2021. 

Single-family buit-to-rent home starts
Market share for single-family built-to-rent homes was 4.11% among all starts of single-family construction by the end of the 2021 third quarter. 

NAHB economists note that there were roughly 16,000 single-family built-to-rent starts during the third quarter. Given the relatively small size of this market segment, the quarter-to-quarter movements typically are not statistically significant.

This analysis considers only those homes built and held by the builder for rental purposes, but excludes homes that are sold to another party for rental purposes. NAHB economists estimate that the latter segment of homes may represent another 3% to 4% of single-family starts.

 

Written By

The National Association of Home Builders (NAHB) is a Washington, D.C.-based trade association representing more than 140,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing, and other aspects of residential and light commercial construction. For more, visit nahb.orgFacebook.com/NAHBhomeTwitter.com/NAHBhome

Related Stories

Housing Policy + Finance

NAHB 2022 Legislative Conference Puts Pressure on Congress to Act On Housing Affordability

Over 600 home builders attended the NAHB 2022 Legislative Conference to advocate for effective affordable housing policies

NAHB

Using Digital Marketing to Sell Homes to Digital Natives

The millennial cohort brings with it growth potential for home builders as millennials reach prime home buying age. But millennials also bring with them new expectations for the home buying experience

NAHB

Creative Solutions to the Starter Home Problem

An interview with Mike Forsum of Landsea Homes

Advertisement
Advertisement

More in Category




Advertisement
Advertisement

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.


Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Subscribe
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.