The National Lumber and Building Material Dealers Association reported that it has sent a letter to U.S. Department of Commerce Secretary Gina Raimondo regarding the continued volatility of lumber prices and the effects it is having on the LBM industry, residential construction, and the economy.
The letter also requests a meeting with Secretary Raimondo and her staff to discuss the impact that these prices are having on LBM dealers and potential remedies to mitigate the ongoing crisis.
Since April of 2020, the cost of lumber has nearly tripled and oriented strand board (OSB) prices are up more than 250%.
According to estimates by the National Association of Home Builders (NAHB), the increases have caused the cost of building an average new single-family home to rise by more than $24,000.
Additionally, the cost of the average new multifamily unit has increased by $9,000 over the same period due to the surge in lumber prices.
The letter calls on the Department of Commerce to return to the negotiating table with Canada to enact a new Softwood Lumber Agreement (SLA) and to more thoroughly examine supply constraints as it relates to lumber production.
The NLBMDA said that it will continue to stay in contact with the Biden Administration regarding this critical issue and will be sure to keep members updated on the latest developments.
The full letter to the Commerce Secretary can be read here.