This week the Department of Commerce enacted a 19.88 percent duty rate against Canadian softwood lumber exports. Both builders, who use the wood to construct house frames, and homebuyers will soon suffer the consequences.
The NAHB says that the annual impact of the duties will include $498 million in lost wages for U.S. workers and $350 million in taxes for the government. The duties will cut 8,241 full-time U.S. jobs, not just in construction, but also in transportation, architecture, engineering, and the sawmill industry.
The average 19.88 percent duty, according to NAHB, will also lead to a reduction of 1.2 billion board feet in Canadian imports and a 6.4 percent increase in prices.
Since lumber will be more expensive, home prices will rise. NAHB projects a $1,236 increase in the price of an average single-family home, and a $945.1 million reduction in investment in single-family structures.
Advertisement
Related Stories
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
Economics
NAHB CEO Tobin Says 'Housing Renaissance' on the Horizon
Responding to positive housing-related data such as falling mortgage rates and increased homebuyer activity, NAHB's CEO Jim Tobin is optimistic
