“Builders are optimistic about housing market conditions as consumer demand continues to grow,” said the National Assn. of Home Builders (NAHB) Chairman Randy Noel, a custom home builder from LaPlace, LA. “However, builders are increasingly concerned that tariffs placed on Canadian lumber and other imported products are hurting housing affordability. Record-high lumber prices have added nearly $9,000 to the price of a new single-family home since January 2017.”
Builder confidence in the market for newly-built single-family homes fell two points to 68 in June on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).
Robert Dietz, chief economist for NAHB, said that “Improved economic growth, continued job creation and solid housing demand should spur additional single-family construction in the months ahead. However, builders do need access to lumber and other construction materials at reasonable costs in order to provide homes at competitive price points, particularly for the entry-level market where inventory is most needed.”
Dietz said that U.S. lumber prices have increased 62 percent since January 2017.