Over 1,200 homes have been destroyed by wildfires in California so far in 2018. And due to increased tariffs, those wildfire victims are having to deal with higher construction costs. So are victims whose homes were ruined by Hurricane Harvey last year in Texas. The hurricane flooded 300,000 structures in the state.
In early November, the U.S. Department of Commerce announced the final determination of antidumping and countervailing duties on imports of Canadian softwood lumber. Reactions from the U.S. were positive and from Canada were negative. The combined final determination rates as announced by the U.S. Department of Commerce are: Canfor 22.13 percent; Resolute 17.90 percent; Tolko 22.07; West Fraser 23.76 percent; Irving 9.92 percent; All Others 20.83 percent.
Tariffs averaging just over 20 percent on Canadian softwood lumber exports to the U.S. are exacerbating market volatility, putting upward pressure on lumber prices and harming housing affordability, says the National Association of Home Builders (NAHB).
The NAHB reported that lumber prices between January 2017 and now are enough to increase the average price of a single-family home by $6,388 and a multifamily housing unit by $2,430. These costs will have to be incurred by both the builder and the consumer. Those prices could be even higher in California, says the California Building Industry Association, who says that tariffs alone could add $8,000 to $10,000 to the lumber costs of a single-family home. Upwards of $10,000 could be added for steel products like nails, fasteners, and wire mesh.
The NAHB has been critical of the tariffs, urging Congress to show greater urgency on resolving the issue and to resume its negotiations with Canada immediately.
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