Commerce Secretary Eyes Holding Lumber Price Summit
It would include representatives from the federal government, the lumber supply chain and the home building industry.
Commerce Secretary Gina Raimondo and National Association of Home Builders CEO Jerry Howard discussed the possibility of convening a summit on lumber prices building materials issues that would include representatives from the federal government, the lumber supply chain and the home building industry.
The discussion happened in late May during a meeting with the Commerce Department leader and the NHAB senior officer team.
NAHB Chairman Chuck Fowke gave her credit for recognizing the price problem has become severe: “Commerce Secretary Raimondo understands that high lumber costs are adding tens of thousands of dollars to the price of a new home. “She heard our stories and acknowledged that she is concerned–and that President Biden is concerned–about the effect of the lumber price problem on the broader economy.”
The Commerce Secretary lauded the current and past NAHB leaders for their constructive engagement on the lumber price issue and for proposing tangible ideas for moving forward on the problem, including better forest management, increased production from the nation’s sawmills, and working toward a more lasting agreement with Canada.
A few days before the meeting, NAHB criticized Commerce’s desire to double lumber tariffs on Canadian lumber shipments into the US from 9% to 18.32% with a statement on its website.
“At a time when soaring lumber prices have added nearly $36,000 to the price of a new home and priced millions of middle-class households out of the housing market, the Biden administration’s preliminary finding on Friday to double the tariffs on Canadian lumber shipments into the US shows the White House does not care about the plight of American home buyers and renters who have been forced to pay much higher costs for housing,” Fowke said.
In mid-May, the Biden Cabinet member told a House Appropriation subcommittee that Commerce’s International Trade Administration would try to identify the root causes and find a solution to the prices that soared 150% during 2020.
After that session, subcommittee member Rep. Robert Aderholt (R-Ala.) said prices are continuing to go up overall for lumber even though there is plenty of lumber that’s being delivered.