I guess the cost of building a home is going up. Existing homes should go up in value. I’m not sure what percent of home construction cost is the lumber.
How much are we importing from Canada though?
I don’t think it matters. It’ll allow US producers to raise prices. The allegation is Canada allows companies to chop down trees on govnement land for below market prices. It makes their lumber lower priced.
Lumberyard got paid about $30k for a 2000 sqft house. (2015)
Increase 20%… 6k more
U.S. home builders are among the biggest customers for Canadian lumber, which is a major component in framing single-family homes. Canadian imports represent about 28% of all softwood lumber purchased in the U.S., according to an analysis by the National Association of Home Builders, a trade group.
Based on analysis last year, a builder spends an average of $15,413 for the softwood lumber in a single-family home, or about 7% of the total construction cost of a home. Lumber cost increases so far this year have added an estimated $3,000 to the cost of building a typical home, according to the home builders’ association.
Builders say lumber costs are already at the highest in a decade, even before the prospect of increased tariffs. Labor shortages throughout the housing recovery have already added costs and held back the overall pace of home construction, contributing to rising prices as more buyers compete for a smaller supply of homes.
The price of milk should go down tremendously because Canada is not buying it anymore from us, we’ll have a surplus, right? Or the American milk producers will just dump the milk somewhere? Our kids will enjoy cheap milk! Hurray!
Exactly! That’s what I thought!
Georgia Pacific lumber, owned by the Koch brothers, beautiful economic supporters of Twhitler are smiling on their way to the bank. Cha-chin!
No! Wait! They will make sure we get the lumber cheaper than from Canada, believe me, trust me, it’s going to be wonderful, bigly! Aren’t you tired of winning?
What’s next? Get loans, invest your $ only through Goldman Sachs? It’s coming! You can smell it in the air tonight…
On the positive side, more jobs for people logging our lumber reserves, same as oil, let’s deplete our reserves will ya. Who cares!
I can’t say the same for those coal miners somewhere that are going to starve because they will get crazy of so many jobs coming to town, China stopped the flow of coal into N Korea. That’s what I heard, if you believe it as I did. Cha-chin!
Price of veggies, lumber, anything and everything are getting pretty high. Nice to know somebody is working for “the people”.
Its a Nimby plot…raise the cost of lumber which will slow down housing growth…Didn’t know Trump was a nimby…lol
Wow, that’s a laughable understanding of the milk and lumber issue.
For you it may sound laughable, for the rest of the country is a disgrace in the make.
Learn to never spit against the wind.
wood price wouldn’t affect BA housing much since land cost is much more than wood cost.
I don’t see any shortage at Home Depot
No, but the pricing is outrageous. My handyman was telling me the wood he bought for the subflooring was expensive and he was not lying as I happened to be at HD picking up stuff so I checked the pricing. Everything is more now, sheetrock, etc…
This is bad news for flippers. Profit margin will be squeezed.
I am more worried about the rise in interest rates…
I’d think labor costs would be a bigger concern. Aside from flooring, how much of the renovation is really lumber? I see this affecting new houses way more.
Even for new houses, based on what elt1 mentioned once, it costs about $5-10/SF of the total housing costs. Pretty small percentage of the typical $300/SF hard cost of a project.
There’s a defeating attitude from some people that makes me worry about them. They just mumble jumble without seeing the effects of words thrown on the plate as a tossed salad from a president that has no regrets on the screw ups he makes every day.
Feels like deja vu
I lost track of this increases. Is it new or continuation of old increase ???
lumber prices have been going down a lot lately.