According to the May 2017 survey for the NAHB/Wells Fargo Housing Market Index, out Tuesday, the availability of building materials, especially framing lumber, significantly jumped on the list of homebuilder concerns, revealing that 21 per cent of single-family builder respondents reported a shortage of framing lumber.
US LUMBER SHORTAGES: MAY 2017
This is a striking jump from 2014 when no product or material was cited as being in short supply by more than 15 per cent of builders. In fact, this remained true for most other materials in the 2017 survey. Next to framing lumber, the most widespread shortages reported in 2017 were ready-mix concrete and trusses, with 14 per cent of builders reporting shortages of each.
For nearly all of these materials and products, the recent history has been relatively stable, with the share of builders reporting shortages moving only a couple of percentage points between 2014 and 2017, said the NAHB/Wells Fargo Housing Mar- ket Index. Next to framing lumber, the most widespread short- ages reported in 2017 are for ready-mix concrete and trusses, with 14 per cent of builders currently reporting shortages of each.
LUMBER PRICE INCREASES RESPONSIBLE FOR SHORTAGES
The rising share of builders reporting shortages of framing lumber is consistent with recent increases in prices for softwood lumber. It is virtually certain that an underlying factor contributing to the shortages and price increases is the ongoing softwood lumber trade dispute between the US and Canada, including the duties on lumber imported from Canada levied by the Department of Commerce in 2017.
NAHB analysis found that in 2016, the U.S. consumed more than 47 billion board feet (bbf), while it produced slightly more than 32 bbf.