Lumber Prices Surge, Impacting US Homebuilders

Volatile Lumber Prices Rattle US Housing Market Boise, ID – The US housing market is facing new challenges due to the volatility of lumber prices. A recent CNBC report highlights the concerns of Steve Martinez, a homebuilder in Boise, Idaho, who states that the price fluctuations create significant uncertainty for his business. "One bunk of this material going up tenfold can cause a huge disruption from a price perspective," he says. Data from the National Association of Home Builders shows that the price of softwood lumber was 23% higher in April 2025 than the previous year. This price increase is impacting major homebuilders, with Lennar, D.R. Horton, and Toll Brothers all experiencing stock declines during the spring. While lumber avoided new tariffs, the Trump administration's interest in trade restrictions remains a concern, potentially driving prices even higher. Canada accounts for about 85% of US softwood lumber imports, representing nearly a quarter of the US supply. The situation underscores the interconnectedness of global markets and their effect on the domestic economy. The ongoing uncertainty in lumber prices continues to pose significant challenges for the US housing market.