Commerce Secretary Promises to Act on Lumber Prices

New U.S. Commerce Secretary Gina Raimondo told a House Appropriations subcommittee last week she and her office planned to prioritize reducing the historic and prohibitively high cost of lumber in the U.S. “I promise you I will,” she said.

High lumber prices were a frequent topic of conversation during the subcommittee meeting, which saw several lawmakers advocating for action.

As Rep. Ben Cline (R-Va.) noted, “The National Association of Home Builders says overall lumber prices have tripled and the increase translates into a nearly $36,000 increase in the price of the average single-family home.” He added the cost of oriented strand board (OSB) has jumped more than 250 percent since March 2020, rising from $8 a sheet to more than $60.

Raimondo acknowledged supply chain disruptions were causing major problems in homebuilding and many other industries. “I actually would love your guidance on what you think could be done,” she told Cline. “So right now we are trying to get under the covers of what’s going on, what are the root causes, and then what can we do at ITA [the International Trade Administration] to try to solve the problem, because I understand the problem and it affects the whole industry.”

Rep. Robert Aderholt (R-Al.) echoed support for action on lumber prices. “I understand there is plenty of lumber that’s being delivered, but the prices are continuing to go up and I think there is an issue with production,” he said. “If you [Raimondo] could make this a priority, it is really putting a lot of folks in a very difficult position for home building and various construction projects.”

Experts forecast lumber prices will remain high through the summer before dropping back as supply gradually catches up to demand. The easing of quarantine restrictions and the return of workers to sawmills and the trucking industry should gradually restore normal levels of lumber supply.