Dallas Builders Urge Action on Lumber Supply Shortages

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By Phil Crone
Executive Officer, Dallas Builders Association

On Oct. 20, nearly 100 Republican and Democratic lawmakers sent a letter to President Trump seeking urgent action on lumber supply shortages. Lumber shortages have resulted in unprecedented price spikes in recent months that are threatening the housing industry and economic recovery. 

The Dallas Builders Association took a leading role in rallying support for the letter by securing Rep. Kenny Marchant as one of the leading signatories.

“These sharp increases are challenging, especially in light of the ongoing housing affordability crisis,” the letter stated. “The National Association of Home Builders (NAHB) estimates the recent spike in softwood lumber costs has caused the price of an average new single-family home to increase by $16,148 since April 17. The market value of the average new multifamily home has increased by $6,107 over the same period.”

The letter adds that housing can create jobs and boost the economy, but in order to do so, our nation’s leaders must address the rising costs of lumber and other building materials. Lawmakers called on the administration to “bring all stakeholders to the table and work to find a solution to address lumber scarcity and subsequent price spikes to ensure everyone’s needs are met.”

He’d never ask for it, but Dallas BA Director of Government Affairs David Lehde deserves a ton of credit. He is a former Congressional staff member who knows how to get these initiatives rolling. He did so in fine fashion here and I’m optimistic consumers will soon realize the savings produced by his efforts.

This is the latest action to urge Congress and the administration to address this urgent issue. In August, NAHB asked President Donald Trump, Commerce Secretary Wilbur Ross, and U.S. Trade Representative Robert Lighthizer to take prompt action regarding soaring lumber prices and supply shortages that are harming the housing sector and the economy. A similar message was sent to the U.S. Lumber Coalition with a request to work together to address shortages in the lumber supply chain caused in part by the COVID-19 pandemic.

At the end of August, NAHB Senior Officers held talks with members of the White House National Economic Council to discuss the impact that soaring lumber prices are having on the housing industry and to press for immediate action. The following month, NAHB leadership reiterated strong concerns regarding the lumber supply situation in a virtual meeting with Commerce Secretary Ross.

Based on the lumber price trend over the past month, our ongoing efforts appear to be showing positive results. Lumber prices are currently roughly $750 per thousand board feet — down nearly 20 percent from their mid-September peak but still far too high. 

We appear to be over the peak in terms of lumber pricing. However, a long-term trade deal is still needed to stabilize prices and ensure producers don’t take advantage of the crisis.  


Phil Crone is the executive officer of the Dallas Builders Association, the trade association and network of Dallas builders. Find out more about the DBA at dallasbuilders.com.

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4 Comments

  1. Eric on November 2, 2020 at 8:47 am

    Why is there a lumber shortage?

    • Phil Crone on November 2, 2020 at 12:39 pm

      Eric, the short answer is that lumber mills in the US were not ready for the demand. Initially, it was hard to blame them because no one expected it. However, with the tariffs in place, it became obvious they could keep prices high without fear of international competition. Therefore, many are operating with only two shifts when they could easily run three, employ more people, produce more lumber and lower prices. This is yet another example to add to the Economics 101 textbook chapter entitled “why tariffs don’t work.” A long-term deal with Canada on lumber is essential as is ensuring domestic producers answer the bell on demand. For various reasons, I think this situation will improve early next year no matter who the President is.

  2. Eric on November 3, 2020 at 8:29 am

    Thanks.

  3. Lumber Yard on November 30, 2020 at 10:59 am

    Thank you for the post! We opened a lumber yard this year and business has has been crazy busy due to Covid 19

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