NAHB NOW
KEY NAHB Housing Issues
1.
NAHB’s tireless efforts to work with the White House, Congress, and lumber producers to increase production and bring prices lower are showing some positive results but the fight is far from over. 2. NAHB’s recent legal victory in the U.S. District Court for the Northern District of Ohio means that the CDC’s federal eviction moratorium has been set aside for all members. However, the eviction moratorium may still apply to landlords who are not NAHB members.
•
•
3. President Biden’s broad COVID-19 relief package contains several provisions to help our members, including $175 billion in low-interest loans for small businesses, $15 billion in grants to small businesses and an additional $25 billion in rental assistance to help renters and landlords.
•
4. Recruiting is the lifeblood of the Federation. Please participate in NAHB’s “ONE in 21” campaign to recruit at least one new member this year.
•
5. NAHB members are invited to sign a Diversity, Equity and Inclusion compact to enhance a diverse and inclusive membership that represents all communities that seek the American dream of homeownership.
• • • • •
•
•
NAHB’s tireless efforts to work with the White House, Congress, and lumber producers to increase production and bring prices lower are showing some positive results but the fight is far from over. Though still far too high, framing lumber prices are down nearly 50 percent from their peak in May and prices are down even further on the futures market. Part of the reason for this positive development is because that NAHB has owned this issue. For the past year, we have been the leader in educating the public and policymakers about how rising lumber prices are harming home builders, home buyers and the economic recovery. NAHB leaders have appeared on CBS This Morning and numerous times on Fox Business News. We have also been featured in Bloomberg, CNN Business, Fortune, CNBC, and scores of other local media outlets across the nation calling for action to address rising prices and supply shortages. Overall, on the media front, we have earned more than $50 million in media coverage, with over 11,000 stories featured in national and local news. Effectively, we got $50 million in national publicity for free rather than having to pay for it. In the policy arena, we have reached out to virtually every member
July 2021
Not Out of the Woods Yet
•
• •
Lumber Prices
of Congress on this issue and held talks with top White House officials and Commerce Secretary Gina Raimondo. Thanks to the outreach of NAHB and our grassroots, several House and Senate leaders have openly raised the issue of soaring lumber prices and housing affordability with Secretary Raimondo and U.S. Trade Representative Katherine Tai. In fact, Secretary Raimondo addressed the NAHB Leadership Council on June 28 and said that “supply chain disruptions are at the top of my mind.” The secretary told NAHB she will conduct a summit with all interested stakeholders to address supply side constraints and to find solutions to keep this from happening again.
•
•
Despite these positive developments, it is far too soon to claim victory. Last November, lumber prices fell quickly from the summer peak only to abruptly reverse course and soar to new heights. Now, we need to be sure that the drop in prices that began in late May continues. Moreover, one factor in this recent price decline is because demand is falling to meet supply instead of supply rising to meet demand. In other words, many builders are delaying or even canceling projects to wait for lumber prices to decline to reasonable levels. And countless builders who are moving full steam ahead have not been able to take advantage of the recent decline in lumber prices because producers are still selling off lumber that they purchased from the mills when prices were at their peak. So, when buyers read that lumber prices are coming down, builders need to educate them about this price lag.
Moving Forward •
• •
•
Looking ahead, our focus is not limited to only lowering lumber prices and increasing supply. We are putting pressure on policymakers to improve supply chains for all building materials in order to protect housing affordability. While lumber costs have come down in recent weeks, they are still more than 120 percent higher than a year ago. And OSB prices are up more than 380 percent over the last year. The NAHB advocacy team – Government Affairs, Communications, Economics and Legal – continues to work doggedly on all fronts to find solutions that will ensure a lasting and stable supply of lumber and other building materials for the home building industry at competitive prices. Learn more about what NAHB is doing to resolve the lumber crisis
www.ncbia.com
page 17
