Fix building material supply chains
The cost of building materials has surged 38% since the pandemic, with the four-fold lumber price spike in 2021 adding more than $30,000 to the price of an average new single-family home.
The Key Components
LUMBER: It goes without saying that lumber is an essential material for the construction of new homes in America. Unfortunately the production of lumber in The US is not sufficient enough to supply the demand and we rely on Canada to fill that gap. Despite this fact the Department of Commerce announced in February their intention of increasing the amount of tariff on Canadian lumber from 8.05% to 14%. Industry leaders at the same time are calling on the administration to suspend tariffs and enter into negotiations with Canada on a more equitable agreement for the import of Canadian lumber.
CONCRETE: Ready mix concrete prices continue to rise and are up 6.88% over January of 2023 pricing. Unfortunately, there aren’t other products that can be substituted for concrete in the building process.
STEEL: Steel mill products continue to rise and our nearly 4.5% higher than 2023. When lumber was at all-time highs steel framing increased slightly but has never had a very significant portion of the market and isn’t a viable alternative now.
DRYWALL: the only modest bright spot is that gypsum pricing is slightly lower than the previous year.
Ease Costs
Obviously measures designed to reduce inflation will have an impact on all building cost but some fundamental issues such as lumber tariffs and other material tariffs need to be addressed and corrected in order to see a return to lower costs or at least limit the amount of increases.