The lumber and building materials industry is grappling with severe price volatility, causing rising costs for homeownership and construction projects. Despite delays in tariffs on imports from Mexico and Canada, price fluctuations continue to disrupt the market. This instability has led to hoarding, delayed restocking, and customers abandoning purchases due to unexpected price hikes.

“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.”

The situation is drawing comparisons to the pandemic-era supply chain disruptions that caused record-high price spikes and shortages. Dealers are now facing similar issues with unpredictable cost increases, difficulty securing supplies, and customers unable to proceed due to fluctuating prices.

Additionally, past experiences with tariff-driven price surges have shown that while raw material costs may eventually stabilize, prices for manufactured building materials like doors, roofing, and hardware rarely return to pre-crisis levels. These price increases add to the long-term financial burden on businesses and homeowners.

Independent lumber dealers, who have long served their local communities, are particularly struggling with the volatility. The daily price fluctuations make it difficult for retailers to provide accurate quotes, forcing them to shorten pricing guarantees and causing frustration for contractors and homeowners. In some cases, disputes over contract pricing have emerged due to unexpected price hikes.

This price volatility extends beyond lumber, affecting a range of essential building materials and home improvement products. Even domestically manufactured materials are seeing price increases, as the market accounts for potential additional costs from raw materials sourced from Canada and Mexico. Similar price surges have already been observed with steel, driven by uncertainty before the implementation of tariffs.

Originally reported by Roi-NJ.