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“So the effects that the pandemic has had on the economy make it a lot more difficult for builders to absorb those costs.” “The majority of homebuilders in America are truly small businesses, building fewer than 10 homes a year,” Logan said in a telephone interview. Framing lumber accounts for as much as a fifth of the material costs of erecting a home. Construction is topping forecasts, and builders will be forced to absorb the additional expenses, he said. Lumber mills in the Pacific Northwest cut production amid lockdowns, and builders are buying more wood from Canada, he said.Ĭanadian producers are paying average tariffs of more than 20% on timber shipments to the U.S., and that translates into an average price increase of about 8% in the U.S., Logan said. and Canada over softwood lumber is adding to the expenses homebuilders face in the fallout from disruptions related to the coronavirus pandemic, said David Logan, director of tax and trade policy analysis for the Washington-based National Association of Home Builders. (Bloomberg) - As a wave of pent-up homebuying emerges across the U.S., a pesky and oft-forgotten trade dispute with Canada is boosting building costs.Ī long-simmering spat between the U.S. A Forgotten Trade Spat With Canada Is Costing U.S.
