Soaring lumber prices adding to 'dire' housing scenario
Lumber used primarily for framing adds more than $18K to new home costs: Report
The price of lumber is chipping away at an already "dire" housing market scenario, home builders warn.
"If people aren’t listening now, the dire predictions that we've been making appear to be coming true," National Association of Home Builders CEO Jerry Howard said on "Varney & Co." Wednesday.
Volatile lumber prices have caused the average price of a new single-family home to increase by $18,600, according to a new statistic from the NAHB.
And it’s not wooden cabinets or floors that are adding to the price tag – it’s the cost for framing timber.
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"Unfortunately, we're talking about the most important component of the house," Howard told FOX Business’ Stuart Varney.
Howard explained that the lumber problem can be traced back to three main causes: supply chain, deregulation and inflation issues.
"It's a combination of the lack of supply, the supply chain problem, the lack of transportation for them to get lumber from the sites to the builders," he noted. "It's a problem with the lumber companies themselves not increasing their production. And it's a problem with our trade war with Canada on lumber."
"It touches on everything, but lumber is a real problem still," Howard stressed.
Increased building material costs were the main topic of concern at a recent builders conference, Howard pointed out. He added that colleagues also expressed complaints over Biden’s infrastructure regulations.
In September, the Biden administration unveiled a plan which outlined building and restoration efforts for more than 2 million homes, proposing both legislative and administrative changes.
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"I can completely understand why our guys are starting to get a little bit nervous despite very powerful demand," Howard said.
In a previous FOX Business interview, Howard specifically called on President Biden to provide access to a steady, affordable supply of lumber and to "fix the overall supply chain."
FOX Business’ Talia Kaplan contributed to this report.