How higher lumber prices will impact homebuilders

Lumber Market Volatility - Lumber prices are volatile, causing uncertainty for construction businesses [1] - In April 2025, softwood lumber prices were 23% higher than the previous year [2] - Lumber futures surged in the first quarter of 2025 due to fears of higher duties and sawmill closures in North America [2] Impact on Homebuilders - Rising lumber prices have impacted major US homebuilders like LAR, Dr Horton, and Toll Brothers, leading to stock declines [2] Trade and Supply - Canada accounts for approximately 85% of all US softwood lumber imports, representing almost a quarter of US supply [3] - Lumber is on the radar of the Trump administration regarding tariffs [3]