Members of the Northeastern Retail Lumber Association (NRLA) are raising concerns over severe price volatility, which is disrupting the lumber and building materials industry and making homeownership and construction more expensive. Despite repeated delays of tariffs on imports from Mexico and Canada, prices continue to fluctuate unpredictably, leading to hoarding by customers, delayed orders for restocking, and customers abandoning purchases due to sudden cost increases.
“In our New Jersey markets, tariffs will only add to the anxiety of customers already grappling with economic instability and geopolitical uncertainties,” said TJ Shaheen, executive vice president of Builder’s General and President, New Jersey Building Materials Dealers Association. “As we enter the busy spring season, the housing market remains somewhat stagnant, in part due to existing homeowners holding onto historically low-interest pandemic-era loans, first-time buyers struggling to afford entry, and the already high costs of doing business in our state. At the ground level, our customers may secure a project quote, win the job, and then, by the time of construction and invoicing, see a significant gap between the original estimate and the final cost—further squeezing already tight margins.”
Many in the industry are drawing striking similarities to the pandemic-era supply chain crisis, when extreme price spikes and shortages wreaked havoc on the market. During that time, lumber prices surged to record highs, disrupting construction projects, delaying home repairs, and making materials unaffordable for many. Now, dealers are reporting the same patterns: unpredictable cost increases, uncertainty in securing supply, and customers unable to move forward with purchases due to rapidly shifting prices.
Adding to concerns, dealers report that past experiences with tariff-driven and pandemic-related price spikes have shown that, while raw material costs may eventually stabilize, prices on most manufactured building materials rarely return to previous levels. Products such as doors, roofing, and hardware remain significantly more expensive than before, with each new price surge compounding the long-term cost burden on businesses and homeowners.
The instability is creating widespread challenges, particularly for small, independent lumber dealers who have long served their local communities. With prices changing daily, retailers are struggling to provide accurate quotes, forcing them to shorten pricing guarantees and leading to increased frustration for contractors and homeowners alike. Many customers are walking away from orders entirely, and in some cases, disputes have arisen over contract pricing due to unexpected price jumps.
This volatility extends beyond lumber, affecting a wide range of essential building materials and home improvement products. Dealers warn that even domestically manufactured materials are seeing price increases, as the market factors in potential additional costs on raw materials sourced from Canada and Mexico. This pattern has already been observed with steel, where speculation and uncertainty drove up prices before tariffs were implemented.
