Lumber Prices & Tariffs: US Housing Market Impact
- housing market is facing headwinds, and the price of lumber is a key point of contention. The National Association of Home Builders (NAHB) and the U.S.Lumber Coalition are...
- The NAHB suggests that tariff uncertainty and high lumber prices are contributing to the downturn.
- Canadian softwood lumber accounts for approximately 85% of U.S.
Uncover the complex relationship between lumber prices and the U.S. housing market. this in-depth analysis explores how lumber tariffs and potential trade disputes with Canada are impacting home affordability and construction.The National Association of Home Builders (NAHB) points to tariff uncertainties and lumber costs as key factors in the current market slump. However, the U.S. Lumber Coalition offers a diffrent outlook, highlighting other contributors to high home prices. News Directory 3 delivers a balanced view,examining the arguments from both sides and the potential implications for homeowners. Will these lumber prices continue to influence the market? Discover what’s next…
Lumber Prices, Tariffs Impact U.S. Housing Market
Updated June 03, 2025
The U.S. housing market is facing headwinds, and the price of lumber is a key point of contention. The National Association of Home Builders (NAHB) and the U.S.Lumber Coalition are at odds over the causes of the current slump.Proposed tariffs on Canadian lumber could further complicate the situation.
The NAHB suggests that tariff uncertainty and high lumber prices are contributing to the downturn. Currently, the U.S. imposes a 14.5% anti-dumping and anti-subsidy duty on imported Canadian softwood lumber. This figure could rise to nearly 35% later in the year.
Canadian softwood lumber accounts for approximately 85% of U.S. imports and almost a quarter of the total U.S. supply,according to the NAHB.
Workers move lumber outside a home under construction in Ballston Lake, N.Y., on Oct. 15, 2024. (Angus Mordant/bloomberg via Getty Images)
Jim Tobin, CEO of NAHB, emphasized the need for a reliable and affordable lumber source, stating, “I share President Trump’s desire to create fair and balanced trade across our borders… But until we do that… we need to make sure that we have a reliable, affordable source of lumber.”
Stacked piles of wooden cases are seen in a yard in Edmonton, Alberta, Canada, on feb. 3, 2025. (Artur Widak/NurPhoto via Getty Images)
However, the U.S. Lumber Coalition argues that lumber prices don’t tell the whole story. while random lengths framing composite prices decreased by 67% between May 2021 and April 2025, the price of new homes has increased by 21%, according to a report.
Zoltan van Heyningen, executive director of the U.S. Lumber Coalition, said that factors such as regulatory costs, land costs, and home builder profitability are the primary drivers of home affordability, not lumber prices.
The U.S. Lumber Coalition has been critical of Canada’s lumber industry,alleging that “ongoing unfair trade practices” have harmed U.S. lumber producers and forest-dependent communities.
John Kalabich, owner of Acme Lumber in Chicago, said the duty on Canadian lumber helped him maintain relatively stable prices over the past year. he noted a decrease in demand for both small repair work and large construction projects.