Material Costs

Top Canadian Official Tells NAHB Canada Seeks New Lumber Trade Deal

Filed in Advocacy, Housing Affordability, Material Costs by on July 22, 2021 1 Comment
Top Canadian Official Tells NAHB Canada Seeks New Lumber Trade Deal

Mary Ng, Canada’s top trade official, expressed a strong willingness and desire to engage in negotiations with the United States on a new softwood lumber trade agreement during a video conference meeting yesterday with NAHB CEO Jerry Howard and senior staff.

Continue Reading »

Led by OSB, Lumber Products Now Add Nearly $30K to the Price of a New Home, $92 to Rent

Led by OSB, Lumber Products Now Add Nearly $30K to the Price of a New Home, $92 to Rent

Changes in prices for softwood lumber products that occurred between April 17, 2020 and July 8, 2021 have added $29,833 to the price of an average new single-family home, and $9,990 to the market value of an average new multifamily home, according to NAHB’s latest estimates. The increase in multifamily value, in turn, translates to households paying $92 a month more to rent a new apartment.

Continue Reading »

At NAHB’s Urging, White House Holds Supply Chain Summit

At NAHB’s Urging, White House Holds Supply Chain Summit

NAHB’s tireless efforts to engage the White House to convene a home building materials supply chain summit to seek out solutions to end production bottlenecks that have resulted in soaring material prices has borne fruit.

Continue Reading »

OSB Prices Have Skyrocketed More than 500% Since January 2020

Filed in Advocacy, Housing Affordability, Material Costs by on July 15, 2021 0 Comments
OSB Prices Have Skyrocketed More than 500% Since January 2020

Framing lumber prices garnered more attention than any other building material over the past year as prices quadrupled between April 2020 and May 2021. But even as lumber prices decline, the spotlight on lumber continues to crowd out the story of meteoric price increases of another wood product integral to the integrity of a building’s structure — oriented strand board (OSB).

Continue Reading »

Fed Chairman Expresses Hope Building Material Bottlenecks will be Alleviated

Filed in Advocacy, Housing Affordability, Material Costs by on July 14, 2021 0 Comments
Fed Chairman Expresses Hope Building Material Bottlenecks will be Alleviated

Federal Reserve Chairman Jerome Powell expressed hope that building material bottlenecks that have raised housing costs will begin to ease during a hearing today before the House Financial Services Committee on monetary policy and the state of the economy.

Continue Reading »

NAHB Urges Congress to Enact Policies to Help Builders Boost Housing Production

Filed in Advocacy, Housing Affordability, Material Costs by on July 14, 2021 2 Comments
NAHB Urges Congress to Enact Policies to Help Builders Boost Housing Production

NAHB CEO Jerry Howard testified before Congress today and called on lawmakers to enact key policy proposals that will help home builders to expand the housing supply, reduce the housing deficit and improve housing affordability for all Americans. During a hearing before the House Ways and Means Subcommittee on Oversight on the topic of expanding housing access to all Americans, Howard noted that rising home prices, apartment rents and construction costs represent additional risks to housing affordability for prospective home buyers and renters.

Continue Reading »

Why Builders Stick with Lumber Despite Price Hikes and Shortages

Filed in Economics, Material Costs by on July 12, 2021 4 Comments
Why Builders Stick with Lumber Despite Price Hikes and Shortages

With builders grappling with record-high lumber prices and supply shortages over the past year, why are so few willing to switch away from traditional wood framing methods? A June 2021 survey for the NAHB/Wells Fargo Housing Market Index (HMI) reveals several reasons, but one stands out above the rest.

Continue Reading »

Why Builder Lumber Prices Remain Higher than Headlines Suggest

Why Builder Lumber Prices Remain Higher than Headlines Suggest

While the price of framing lumber has dropped roughly 50% over the past seven weeks according to Random Lengths, prices paid by builders have declined by a fraction of that amount. The disconnect — which has always existed — is inherent to the lumber supply chain. Learn why when lumber market prices drop sharply there can be a long lag time before these full price reductions trickle down to builders and why higher prices reach builders with a much smaller lag time when the price of lumber increases.

Continue Reading »

Strategies Builders Employ to Combat Rising Building Material Costs and Shortages

Strategies Builders Employ to Combat Rising Building Material Costs and Shortages

Single-family builders have taken several steps to counteract rising building material prices and shortages. More than 50% report taking these two specific actions.

Continue Reading »

NAHB Chairman Urges Congress to Boost Lumber Production from Federal Lands

Filed in Advocacy, Housing Affordability, Material Costs by on June 29, 2021 9 Comments
NAHB Chairman Urges Congress to Boost Lumber Production from Federal Lands

To help resolve lumber supply shortages and rein in elevated prices, NAHB Chairman Chuck Fowke today called on Congress to increase domestic lumber production from federal lands, both as a means to improve housing affordability and address the resilience of our national forests.

Continue Reading »