Up the average cost of a home by $9,200

Tariffs on lumber and materials could exacerbate housing affordability, builders warn

From CNN's Alicia Wallace

Softwood lumber — which is sourced from the likes of pine, spruce, firs and other conifers — is prized for its light weight, workability and strength. As such, its applications are vast, but it’s a critical ingredient in the US homebuilding industry.

And considering that 30% of the softwood lumber consumed in the US is imported (with Canada accounting for north of 80% of those imports), American homebuilders have been sounding the alarm that the tariffs could further exacerbate the housing affordability crisis.

Builders estimate that tariffs on lumber and other critical homebuilding materials could up the average cost of a home by $9,200, according to the March National Association of Home Builders/Wells Fargo Housing Market Index.

Economists expect that lumber prices could increase in the near-term and caution that expanding the domestic timber and lumber industry could take time.

A rosier outlook: However, some within the lumber sector say the new tariffs, especially on imports coming from Canada, would help level the playing the field. They also say the existing US industry has a significant amount of existing capacity that’s not currently being utilized.

Jason Brochu, co-president of Pleasant River Lumber in Maine, said his two mills in the Pine Tree State are running at 60% capacity but could increase its workforce and production in a matter of months, if the demand is there.

“We could ramp up fairly quickly,” Brochu said in an interview with CNN. “The saw mill industry has modernized a lot, and speaking for our location and our region, bringing in the employment isn’t a major impediment.”

“It can happen fairly quickly,” he added.