US housing costs could climb again in a trade war
“Basically, the fact that there’s import tariffs on Canadian shipments to the US and vice versa is going to raise the cost of production for everyone, and that’s going to get passed on… ultimately through the housebuilder to the consumer,” wood market expert Russ Taylor (pictured top) told Mortgage Professional America.
American plywood and LVL producers rely significantly on Canadian inputs, Taylor said, and any disruption to that supply chain is unlikely to be absorbed quickly.
The full impact on homebuilders could take a few months to become clear but the direction of travel is clear, he said. “The builders either can’t find product or the prices go higher for certain products, and then that starts to influence homebuilders,” he said.
“Probably not right away – everyone’s got inventory to sell – but certainly looking ahead a couple of months from now, that’s when some shortages or stockouts could start to occur.”
Uncertainty could freeze the market
Fears of higher construction costs for US builders jumped last year as US-Canada trade tensions rose.
