NLBMDA Putting Pressure on Commerce Secretary to Find Solution to Lumber Price Issue

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The National Lumber and Building Material Dealers Association said it has written to U.S. Department of Commerce Secretary Gina Raimondo about the continued volatility of lumber prices and the effects it is having on the LBM industry, residential construction, and the economy.

Lumber prices have nearly tripled since April of 2020.

The letter also requests a meeting with Secretary Raimondo and her staff to discuss the impact of these prices on LBM dealers, as well as potential solutions to the ongoing crisis.

Lumber prices have nearly tripled since April of 2020, and oriented strand board (OSB) prices have increased by more than 250 percent.

According to the National Association of Home Builders (NAHB), the cost of constructing an average new single-family home has risen by more than $24,000 as a result of the increases.

Furthermore, due to the rise in lumber prices, the average new multifamily unit has increased by $9,000 over the same time period.

The letter urges the Department of Commerce to return to the negotiating table with Canada in order to enact a new Softwood Lumber Agreement (SLA) and to conduct a more thorough examination of supply constraints in the lumber production industry.

The NLBMDA stated that it will continue to communicate with the Biden Administration on this critical issue and will keep members informed of any developments.

Zach is our contributor covering home improvement and building renovation business news.