Lumber prices have fallen as homebuilder demand weakens
One of the main materials used for constructing new and repairing existing homes has seen its price plummet so far this month.
Lumber futures fell below $530 per 1,000 board feet this month, marking the lowest price in almost a year, according to Trading Economics. The price drops are "driven by an obvious imbalance of oversupply and weaker homebuilding demand," said Felipe Alarcon, an analyst at Trading Economics, in a recent market analysis
Lumber is a mainstay in U.S. home construction — used to frame walls, roofs, floors, windows and cabinetry. Softwood — such as fir, pine and spruce — are used for home framing, while hardwoods such as maple and oak are used for surfaces. The U.S. imports large quantities of lumber from Canada.
The National Association of Home Builders noted last month that, under the Trump administration, tariffs on Canadian lumber have increased from about 15% to 35%. That increase has produced "a large inventory backlog across the supply chain from mills to dealers that now needs to be worked off," Alarcon said.
Money spent on home renovations and furnishings expected to climb
A consumer survey from BofA Securities suggests Americans plan to spend more on home renovations and furnishings this month.
The number of Americans who plan to buy a new appliance increased from 32% in September 2024 to 34% this month, the survey found. People planning to buy a new home also rose from 18% to 22% during the same span. Meanwhile, expectations to buy home furnishings rose from 24% to 28% — numbers that "could signal more consumers intending to spend" money decorating their homes, the survey found.
The BofA survey also found that, in September, Americans plan to spend more on groceries, personal care products and online shopping, while spending less on travel, business attire and home fitness equipment.
