Lumber prices have been extremely volatile over the past year. They peaked above $950 per thousand board feet in mid-September, fell to around $550 per thousand board feet in mid-November and have surged since. By mid-February, prices hit an all-time high, surpassing $960 per thousand board feet. When prices began their historic rise last spring, NAHB reached out extensively to the Trump administration, members of Congress and lumber mills calling for prompt action to address shortages in the lumber supply chain and soaring lumber prices that are harming your businesses, the housing sector and the economy. NAHB also urged swift action on the trade front, which ultimately help lead to a more than 50 percent tariff reduction on Canadian lumber coming into the U.S. shortly after the Thanksgiving holiday. With the new Biden administration and Congress in place, we are developing short, mid- and long-term strategies to address lumber price and supply issues. This effort is broad-based: • Our Government Affairs team will engage in Capitol Hill meetings, a grassroots campaign and administration briefings. • Communications will focus on a media campaign, a social media push, member testimonials, open letter ads and a stakeholder event. • Economics will quantify the economic impact of higher prices on the industry and economy and engage in industry surveys. • Legal is looking at antitrust issues, Canadian outreach and exploring whether other foreign nations can send more lumber to the U.S. We have already started to implement parts of this comprehensive plan – including a holiday campaign calling on lumber mills to increase production to meet growing housing demand. Moreover, on January 29 a letter was sent to President Biden urging the administration to play a constructive role in mitigating this growing threat to housing and the economy. NAHB called on the White House to urge domestic lumber producers to ramp up production to ease growing shortages and make it a priority to work with Canada on a new softwood lumber agreement. We also urged the President to ask the Commerce Department to investigate why lumber production remains at such low levels during a period of high demand. NAHB is redoubling its efforts in this new political climate and continues to work on all fronts to find solutions that will ensure a lasting and stable supply of lumber for the home building industry at a competitive price. Page 6
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