The volatile wood prices rattle again on the US apartment market, press the builders and threaten to worsen an already bad affordability crisis.
According to the National Association of Home Builders, 23% rose in April in April in April in April compared to the previous year, while the futures rose throughout North America in early 2025.
This has been heavily on large householders LennarPresent Dr. Hoard And Toll brothersall of their shares collapsed this spring.
A freight car with wood crosses the border to Canada from the USA in Champlain, New York, USA, March 11, 2025.
Brendan McDermid | Reuters
Although wood avoided the inclusion in the latest round of tariffs, the Trump government has signaled a growing interest in tightening the trade restrictions. In March, the White House issued an executive regulation that cited the trade department in order to examine the national security effects of holzimports and increase domestic production.
The United States currently gives the Canadian wood an output of 14.5%, and Canada loudly makes up for around 85% of all US soft wood spotes, which corresponds to almost a quarter of the US supply.
This tariff rate could increase to 34.5% in the course of this year after an official review of the Ministry of Commerce, which further disturbs a sector that already corresponds to material costs and labor shortages.
“The unpredictability of wood prices increases the planning and budgeting of serious complexity,” said Steve Martinez, President of Idaho -based trade wind General contracting. Its business builds high-end apartment buildings, in which wooden frames are crucial up to 18% of the construction costs according to HomeGuide.
A label “Made in Canada” on wooden stacks at Mouleures Algonquin Moben in Mirabel, Quebec, Canada, on Tuesday, March 11, 2025,.
Graham Hughes | Bloomberg | Getty pictures
In addition to homebuilding, higher wooden costs for renovation work, fences and interiors. The annual market review and prospects of the United States Forest Products found that US wood production was reached in 2023 up to 64 million cubic meters 1% From the year before. However, the supply continues to exceed the supply. Environmental regulations, aging forests and work restrictions put together the challenge.
Almost 100 million US households cannot afford a house with the middle price, which is now an average of $ 460,000. If the affordability deteriorates, experts warn that higher tariffs and ongoing care instability could bring the new development to a standstill for years.
The Ministry of Commerce is expected to make a final decision about Canadian wood duties by August.
Take a look at the video To learn more about the trade tension between the USA and Canada and what is behind the increase in wood prices.