Lumber Update
The lumber market in May 2025 is stabilizing but faces significant pressures that contractors and builders must navigate. Prices have seen a slight decrease recently but remain elevated compared to last year, driven by robust housing demand and supply constraints. Single-family housing starts are projected to rise 11% in 2025, fueled by a 4.5 million home shortfall, while repair and remodeling projects sustain over 40% of softwood demand. However, mill closures, reducing North American capacity by 7% since 2023, and labor shortages are tightening supply. The Section 232 investigation, initiated March 10, 2025, to assess if wood product imports threaten national security, adds uncertainty. Potential tariffs on Canadian lumber (70% of U.S. imports) could increase costs by February 2026. Natural disaster rebuilding needs further strain availability, keeping the market volatile.
Builder Strategies
High mortgage rates and rising costs are squeezing budgets, so adopt cost-saving techniques like panelized construction. Monitor trade policy updates and engage with Valley Ace Hardware for real-time market insights. Planning projects with flexibility and maintaining open communication with us will be beneficial to navigating potential disruptions.
Valley Ace Hardware’s Actions
Valley Ace Hardware is taking decisive steps to support contractors in this dynamic market. We’re actively expanding our supplier network, sourcing high-quality lumber from diverse domestic and Canadian partners to ensure consistent stock levels, even if tariffs or supply chain issues arise. Our team is closely monitoring market trends, enabling us to provide timely advice and competitive pricing. We’re committed to working hand-in-hand with contractors, offering pre-order options and customized inventory planning to secure the materials you need for your jobs. Contact Valley Ace Hardware today to discuss your project requirements, lock in supplies, and benefit from our dedication to delivering the best value and service in the industry.
