Category Archives: Finance & Economics

Finance & Economics

Canadian housing starts largely flat from April to May

Canada Mortgage and Housing Corporation
June 16, 2025
Category: Finance & Economics
Region: Canada

The six-month trend in housing starts was flat (0.8%) in May (243,407 units), according to Canada Mortgage and Housing Corporation (CMHC). The trend measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada. The total monthly SAAR of housing starts for all areas in Canada was also flat (-0.2%) in May (279,510 units) compared to April (280,181 units). Actual housing starts were up 9% year-over-year in centres with a population of 10,000 or greater, with 23,745 units recorded in May, compared to 21,814 units in May 2024. The year-to-date total was 90,767 up 1% from the same period in 2024. “Growth in actual starts activity in May was once again driven by increases of single-detached homes and purpose-built rentals in Québec. By contrast, weak condominium market conditions in Toronto and Vancouver have contributed to declines in overall housing starts in these regions,” said Tania Bourassa-Ochoa, CMHC’s Deputy Chief Economist.

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Lumber Reaches 10-Week Highs

Trading View
June 12, 2025
Category: Finance & Economics
Region: Canada, United States

Lumber futures rose past $610 per thousand board feet, a ten-week high, as steady construction activity met tightening supply and mounting trade barriers. US homebuilding remains steady with single-family starts flat at 1.36 million units in April and permits edging lower, while Canadian multi-unit starts jumped 34%, keeping mill orders firm. Canadian harvests are constrained by pine-beetle infestations, prairie wildfires that have burned more than 200,000 hectares this spring and strict cut limits that left British Columbia nearly 42% below its allowable quota in 2023. In the US, sawmill utilization stalled in the mid-70% range despite recent capacity additions. Tariffs of roughly 14.5% on Canadian softwood, along with threats of higher levies, have discouraged cross-border shipments, while major exporters divert supply to Asian and European markets. Elevated fuel and transportation costs further raise delivered prices.

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Can Lumber’s Bullish Trend Continue?

By Andrew Hecht
Barchart
June 10, 2025
Category: Finance & Economics
Region: Canada, United States

The CME’s physical lumber futures have been in a bullish trend since the July 2024 low of $455.50 per 1,000 board feet. The weekly chart indicates that lumber futures have formed higher lows and higher highs, reaching a peak of $699 per 1,000 board feet in March 2025. While the price has dropped below the $600 level, the pattern of higher lows remains intact in June 2025. …Seasonality suggests that a lumber rally may need to wait until 2026… Lumber tends to be a seasonal commodity, with prices peaking during late winter and early spring as the weather improves and construction activity increases. In 2021, the old random-length lumber futures rose to a record high of $1,711.20 per 1,000 board feet in May, and in 2022, reached a lower high of $1,477.40 in March. …Keep an eye on interest rates as declines could ignite pent-up demand for new homes, which could light a bullish fuse under the lumber futures arena. 

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China’s Pulp Supply Chain: Insights on Trade, Logistics and Futures Markets

Kelly McCloskey, Editor
The Tree Frog Forestry News
June 4, 2025
Category: Finance & Economics
Region: Canada, United States, International

At International Pulp Week, three speakers discussed businesses that connect to China’s role in the global pulp industry — including trading, port logistics and the futures market. Haidong Weng, Executive Vice President of Pulp & Paper Research at Xiamen C&D… explained that after the US implemented its third wave of tariffs, Chinese exports of paper and board to the US fell sharply, with vessel density in major Chinese ports reflecting a significant pullback in trade flows. …He also described the cascading effects on US retail markets. …The scale and resilience of China’s port logistics were front and centre in a presentation by Tian Jun, representing the Shanghai International Port Group’s Luo Jing Terminal. Tian explained that SIPG views pulp as a strategic growth cargo across its network of general cargo terminals. …Another presentation came via video from Chi-Fei Fei of the Shanghai Futures Exchange (SHFE), who provided an overview of China’s pulp futures market.

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Pulp Markets Outlook: Global Tissue Growth to Ease, Printing Decline Slows

By Kelly McCloskey, Editor
Tree Frog Forestry News
June 4, 2025
Category: Finance & Economics
Region: Canada, United States, International

At International Pulp Week, Mathieu Wener, Senior Economist at Numera Analytics, provided a detailed overview of current trends in key end-use markets for pulp, with a particular focus on tissue and printing and writing papers. Drawing on recent data and modelling, he examined how these sectors have evolved post-pandemic, what is driving demand patterns today, and what may lie ahead. Wener began with tissue markets, where profitability has remained strong despite considerable cost pressures in recent years. “Producers passed through rising costs since 2022,” he noted, showing how eurozone parent roll and pulp prices had shifted over that period. Although price differentials between pulp and tissue had narrowed, margins remained healthy.” …Wener underscored the importance of tracking both macroeconomic forces and demographic trends in shaping pulp demand. For tissue, slowing population growth and cautious consumer behaviour would temper growth expectations. For printing and writing papers, the secular decline would continue, but at a somewhat more stable pace.

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Global Pulp Outlook: Short-Term Recovery, Structural Divergence Ahead

By Kelly McCloskey, Editor
Tree Frog Forestry News
June 4, 2025
Category: Finance & Economics
Region: Canada, United States, International

The final presenter at International Pulp Week, Emanuele Bona, VP of Europe for the Pulp and Paper Products Council (PPPC), provided a comprehensive update on global market pulp demand trends, with a particular focus on the rebound underway in 2025 and the longer-term outlook for key markets and product segments. Bona began by noting that 2024 had been a weak year for market pulp demand, with global chemical market pulp demand falling by 0.9 percent. However, the first months of 2025 showed a marked improvement. “In 2025, after four months, demand is up almost one million tonnes,” he reported. Both softwood and hardwood pulp segments contributed to this recovery. …Looking ahead, Bona projected that global market pulp demand would return to growth but at a more moderate pace. “Growth to average 1.5 percent through 2029,” he said. The long-term trend for softwood pulp was expected to remain flat at best, while hardwood demand growth was projected to slow despite ongoing substitution trends.

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Straight talk on tariffs: Brass tacks guidance amid ongoing uncertainty

By Neil Agarwal, Frisco Woodline CEO
The HBS Dealer
June 4, 2025
Category: Finance & Economics
Region: Canada, United States

Uncertainty regarding tariffs continues to challenge companies across industries. It’s a common theme in every conversation I’ve had with fellow business owners lately: How do we plan, price or grow when the rules are constantly shifting? In our case, the lumber industry got a temporary break—framing lumber from Canada, which makes up over 30% of the US market, was exempt from the original tariffs. That’s good news for now, especially for residential construction. But there’s still no clarity on imports from other key countries like Brazil and China, where tariffs remain in full effect. That could have a serious impact on specialty products like Ipe and hardwood veneers. Other building materials—fasteners, finishes, flooring, and more—are also caught in the middle. …That cost will be passed on to the end user. Businesses like ours don’t have the luxury of absorbing increased costs indefinitely. If we did, we’d be out of business.

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LBM Dealers comment on how lumber and other materials sold will be impacted by tariffs

The LBM Journal
June 4, 2025
Category: Finance & Economics
Region: Canada, United States

There has been a lot of news recently on higher tariffs between the U.S. and its trading partners, including Canada and Mexico. One concern that is top of mind for many LBM dealers is how these new tariffs will affect lumber and other materials sold at yards and stores across the country. How concerned should I be and what action, if any, can I take to protect my business? Responses from lumberyards, full-line building material dealers, and specialty dealers/distributors:

  • Stock up heavy now and ride the wave. Things will straighten up.
  • Keep a sharp eye on inventory levels and don’t make any rash moves. Steady as she goes!
  • When the tariff goes on, adjust your prices that same day.
  • Don’t quote too far in the future. Quote only subject to tariffs.
  • Communicate with customers and suppliers regularly. Keep things transparent when possible.

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Bank of Canada holds policy rate at 2.75%

The Bank of Canada
June 4, 2025
Category: Finance & Economics
Region: Canada

The Bank of Canada today maintained its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.70%. Since the April Monetary Policy Report, the US administration has continued to increase and decrease various tariffs. China and the US have stepped back from extremely high tariffs and bilateral trade negotiations have begun with a number of countries. However, the outcomes of these negotiations are highly uncertain, tariff rates are well above their levels at the beginning of 2025, and new trade actions are still being threatened. Uncertainty remains high. While the global economy has shown resilience in recent months, this partly reflects a temporary surge in activity to get ahead of tariffs. …In Canada, economic growth in the first quarter came in at 2.2%. …CPI inflation eased to 1.7% in April. …Excluding taxes, inflation rose 2.3% in April.

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US growth forecast cut sharply by Organisation for Economic Co-operation and Development (OECD) as Trump tariffs sour global outlook

By Sophie Kiderlin
CNBC News
June 3, 2025
Category: Finance & Economics
Region: Canada, United States, International

Economic growth forecasts for the US and globally were cut further by the Organisation for Economic Co-operation and Development (OEDC) as President Trump’s tariff turmoil weighs on expectations. The US growth outlook was downwardly revised to just 1.6% this year and 1.5% in 2026. In March, the OECD was still expecting a 2.2% expansion in 2025. The fallout from Trump’s tariff policy, elevated economic policy uncertainty, a slowdown of net immigration and a smaller federal workforce were cited as reasons for the latest downgrade. Global growth, meanwhile, is also expected to be lower than previously forecast, with the OECD saying that “the slowdown is concentrated in the United States, Canada and Mexico”. “Global GDP growth is projected to slow from 3.3% in 2024 to 2.9% this year and in 2026. It had previously forecast global growth of 3.1% this year and 3% in 2026. …The OECD adjusted its inflation forecast, saying “higher trade costs will also push up inflation.”

Related news in the Financial Post: Canada to take brunt of one of the worst slowdowns since the pandemic, warns OECD

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Fight over lumber tariffs could reshape future of US home building

By Aislinn Murphy
Fox Business News
June 2, 2025
Category: Finance & Economics
Region: Canada, United States

Lumber is in the spotlight as the National Association of Home Builders (NAHB) and the US Lumber Coalition disagree over what’s behind the U.S. housing market slump. The NAHB has pointed to tariff uncertainty and lumber prices as being partly responsible. The US’s current anti-dumping and anti-subsidy duty on imported Canadian softwood lumber stands at 14.5%. It could potentially climb later in the year to nearly 35%. “I share President Trump’s desire to create fair and balanced trade across our borders, certainly would bring back as much production as we can,” NAHB CEO Jim Tobin said. “But until we do that, and it will take years and millions of dollars of investment, we need to make sure that we have a reliable, affordable source of lumber.” …The US Lumber Coalition has also been critical of Canada, saying that “ongoing unfair trade practices” by its lumber industry have been “extremely harmful to US lumber producers.”

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If a Tree Falls in the Forest: Softwood Lumber Trade

By Sean Steuart, Kasia Trzaski Kopytek, Chris Krueger
TD Securities
June 2, 2025
Category: Finance & Economics
Region: Canada, United States

For Canadian lumber producers, US market access restrictions are a long-term reality. We expect increasing duty rates plus an incremental tariff will be applied to Canadian lumber imports by the third quarter of 2025 (Q3/25). …Short-term hurdles are notable (demand headwinds, rising US duties, and expected incremental tariffs) but for some companies, we believe that recent valuation contractions discount excessive risk. …A mutual lumber trade agreement between Canada and the US is not expected in the near- to medium-term but is more likely in five years. …We include an incremental US 25% tariff applied to Canadian lumber imports (Section 232 investigation) starting Q3/25 in addition to cumulative countervailing duties (CVD)/anti-dumping duties (ADD) collection rates expected to rise to almost 35% for most sawmills by mid-Q3/25. For the average Canadian sawmill, we estimate that Canadian lumber prices would need to rise 30% from current levels to pass on the increase to duty deposit rates plus the incremental tariff to customers.

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RBC forecasts further declines in lumber and OSB prices

Investing.com
June 3, 2025
Category: Finance & Economics
Region: Canada, United States

On Monday, RBC analysts reported a decrease in the prices of lumber and oriented strand board (OSB) over the past week. The Framing Lumber Composite price fell by $4 to $438, while the OSB Composite price dropped by $7 to $282, according to Random Lengths data. These price movements are particularly relevant for building materials companies like AZEK, a significant player with a $7.17 billion market capitalization and strong 37.22% gross margins. RBC Elements, in collaboration with its in-house data science team, developed a multi-variable time series model to project future price movements. This model estimates that the Framing Lumber Composite will decrease by an additional $1 to $437 in the coming week. Similarly, the OSB Composite is forecasted to decline by $5 to $277 next week, based on the same predictive model. These projections are part of RBC’s ongoing analysis of the paper, packaging, and forest product sectors.

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Going No Where in 2025-Q2, But Higher Prices Coming in Q3 from Duties (and Maybe Tariffs)

By Russ Taylor
Russ Taylor Global
June 2, 2025
Category: Finance & Economics
Region: Canada, United States

US market conditions have been lackluster since the Trump tariffs on Canadian lumber were postponed for the second time in early April. …The proposed 25% tariffs were the catalyst for SPF prices rising in the first two months of 2025. …Today, this puts BC Interior SPF mills back near break-even levels at current lumber prices and 14.4% duties with other Canadian regions looking to be marginally profitable. With tariffs in suspension mode, the US market fundamentals have now been exposed – the market is weak and remain weak – and there is too much supply – again! ….The silliness of the Trump administration’s irrational rhetoric as well as biased trade policies will only result in raising all lumber prices to the US home builder, the renovation contractor, and the consumer. How much of the tariffs (or Canadian duties) are passed on to the consumer is the only wild card, but it will likely be the majority.

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What temporary tariff halts and new housing hopes mean for clients

By Phil Porado
Canadian Underwriter
May 29, 2025
Category: Finance & Economics
Region: Canada, United States

A pause on some tariffs creates a window for Canadian companies to re-examine their risk profiles and work with brokers to secure needed coverage. Both Bay Street and Wall Street are cheering the ruling from the US Court of International Trade that, at least temporarily, tamps down the 10% tariffs the White House imposed on most countries, and drug-related emergency orders setting 25% tariffs on some goods from Canada and Mexico. …Some companies may use tariff lulls to stock up on certain key materials. …Construction companies, for example, often import flooring products from the US, even though Canadian builders have good access to lumber. For them, stockpiling those materials reduces the economic impacts of both US tariffs and Canadian retaliatory tariffs. …Additional optimism arrived via King Charles III’s Speech from the Throne this week. The document opening Canada’s parliament commits to major economic initiatives, including large-scale increases in housing construction.

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West Fraser Declares Dividend

West Fraser Timber Co. Ltd.
June 11, 2025
Category: Finance & Economics
Region: Canada, Canada West

VANCOUVER, BC – West Fraser Timber Co. Ltd. has declared a quarterly dividend of US$0.32 per share on the Common shares and Class B Common shares in the capital of the Company, payable on July 14, 2025 to shareholders of record on June 26, 2025. Dividends are designated to be eligible dividends pursuant to subsection 89(14) of the Income Tax Act (Canada) and any applicable provincial legislation pertaining to eligible dividends.

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Multi-family starts boost Canada, U.S. new home starts

By Joel Schlesinger
The Calgary Herald
May 29, 2025
Category: Finance & Economics
Region: Canada, Canada West

New homes development got a shot in the arm this spring with April starts rising in Canada and the United States. Recent reports from TD Economics examined new home data in both markets, finding month-over-month rises in starts for April. In Canada, starts jumped 30 per cent month over month, marking the largest rise since June 2023. Driving growth was the multi-family family segment that saw starts rise 34 per cent, whereas single-family detached home starts gained six per cent from March. …TD noted the “bounce-back” in activity was not unsurprising given levels were so low to start the year. What’s more, housing starts could “be softening,” amid higher construction costs and lower immigration, it cautioned. In the U.S., activity was less robust by percentage growth. Starts there increased less than two per cent month over month.

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Weyerhaeuser, Firefighter Behavioral Health Alliance Partner for Fourth Year to Provide Mental Health Resources for Wildland Firefighters

Yahoo Finance
May 28, 2025
Category: Finance & Economics
Region: Canada West, US West

Weyerhaeuser Company and Firefighter Behavioral Health Alliance (FBHA) today announced an extension of their Fighting Fires Together campaign, a partnership that provides specialized mental health support for wildland firefighters and their families across the Pacific Northwest. Fighting Fires Together, now in its fourth year, addresses the often-overlooked mental health impacts of wildland firefighting in isolated, hazardous and highly stressful conditions. Through a free online resource hub, first responders can find specially designed content, including videos about Post Traumatic Stress Disorder, depression, anxiety and suicide prevention, along with mental health tips, educational articles and contacts for occupationally aware support groups and counselors in Oregon, Washington and British Columbia. Weyerhaeuser’s support for wildland firefighting efforts in the Pacific Northwest began in the aftermath of the Yacolt Burn in 1902, when the company began advocating for Washington’s first forest fire legislation and the funding of community fire prevention education and patrols. 

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BC housing minister ready to work with feds if ‘serious dollars on the table’

By Ish Sharma
Business in Vancouver
May 27, 2025
Category: Finance & Economics
Region: Canada, Canada West

Ravi Kahlon

BC Housing Minister Ravi Kahlon touched on a wide range of development and housing issues during an address to the Urban Development Institute, including infrastructure funding, planning standardization and housing targets. Kahlon said that a dialogue is needed around infrastructure funding to address BC’s challenges around housing supply and affordability. …Kahlon also took time to address the Housing Supply Act, which has stirred controversy due to province’s ability to set housing targets that municipalities must meet based on their population and growth projections. …Kahlon’s UDI appearance comes as B.C. municipalities are required to update their official community plans and zoning bylaws by year’s end to include 20 years of housing needs. The OCPs will require updates every five years. The City of Vancouver will have its first ever city-wide official development plan by June 2026.

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Ford government sitting on housing start data for months

By Isaac Callan and Colin D’Mello
Global News
June 11, 2025
Category: Finance & Economics
Region: Canada, Canada East

A final tally of which Ontario municipalities hit their housing targets and how many fell short last year has been finished since mid-February, according to government documents obtained, despite the province refusing to release the data for months. For the past two years, the Ford government has set targets for new homes in towns and cities, promising them extra cash if they meet those goals. The numbers Ontario uses to assess whether or not cities have hit their goals are made up of new homes, long-term care beds and additional units like basements or garden suites. The government set up a website to show which cities had hit their goals. Around October 2024, however, with housing starts across the province stuttering, the government stopped updating the tracker. …While the tracker has appeared abandoned for close to half a year, the government has had “finalized” data for months.

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US Permit Activity Declines for Fourth Consecutive Month

By Danushka Nanayakkara-Skillington
NAHB Eye on Housing
June 16, 2025
Category: Finance & Economics
Region: United States

Housing permits continued a downhill trend for the fourth month in a row, pointing to a broader residential construction slowdown for 2025. Over the first four months of 2025, the total number of single-family permits issued year-to-date (YTD) nationwide reached 320,259. On a year-over-year (YoY) basis, this is a decline of 4.7% over the April 2024 level of 336,124. For multifamily, the total number of permits issued nationwide reached 154,668. This is 1.5% below the April 2024 level of 157,076. Year-to-date ending in April, single-family permits were down in three out of the four regions. The Northeast posted an increase of 5.7%. The Midwest was down by 0.6%, the West was down by 5.6%, and the South was down by 6.1% in single-family permits during this time. For multifamily permits, three out of the four regions posted increases. The Midwest, the South and the West.

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US Consumer Sentiment Improves For The First Time In Six Months

By Joanne Hsu
The University of Michigan
June 13, 2025
Category: Finance & Economics
Region: United States

Consumer sentiment improved for the first time in six months, climbing 16% from last month but remaining about 20% below December 2024, when sentiment had exhibited a post-election bump. These trends were unanimous across the distributions of age, income, wealth, political party, and geographic region. Moreover, all five index components rose, with a particularly steep increase for short and long-run expected business conditions, consistent with a perceived easing of pressures from tariffs. Consumers appear to have settled somewhat from the shock of the extremely high tariffs announced in April and the policy volatility seen in the weeks that followed. However, consumers still perceive wide-ranging downside risks to the economy. Their views of business conditions, personal finances, buying conditions for big ticket items, labor markets, and stock markets all remain well below six months ago in December 2024. Despite this month’s notable improvement, consumers remain guarded and concerned about the trajectory of the economy.

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US Inflation Up Slightly in May, Shelter Index Holds Steady

By Fan-Yu Kuo
NAHB Eye on Housing
June 11, 2025
Category: Finance & Economics
Region: United States

Despite inflationary pressure from tariffs, inflation in May rose slightly but came in softer than expected. The Consumer Price Index increased from 2.3% in April to 2.4% in May year-over-year, according to the Bureau of Labor Statistics’ report. While this report reflected consumer prices after Liberation Day, it showed little sign of tariff impact as most reciprocal tariffs were paused for 90 days and many businesses had frontloaded imports ahead of tariffs. This preemptive action contributed a drag on the first quarter GDP growth. Additionally, the Bureau reduced its CPI collection sample starting in April due to staffing shortages, raising potential data quality concerns. …Meanwhile, housing inflation remains elevated, though it continues to ease gradually. …A large portion of the “core” CPI is the housing shelter index, which increased 3.9% over the year, the lowest reading since November 2021. 

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More than 1,000 Housing Professionals Urge Congress to Act on Key Affordability Issues

The National Association of Home Builders
June 11, 2025
Category: Finance & Economics
Region: United States

More than 1,000 builders, remodelers and associates engaged in all facets of the residential construction industry trekked to Capitol Hill to urge their lawmakers to support policies that will help builders unleash the housing market by allowing them to increase the production of quality, affordable housing. …The best way to ease the nation’s housing affordability crisis and boost housing production is to break down the barriers that are impeding new home and apartment construction,” said NAHB Chairman Buddy Hughes. In more than 250 meetings with their representatives and senators, housing advocates urged lawmakers to act on three key issues that can have an immediate impact on housing affordability: Energy Codes… Workforce Development… Tax Policy.

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Stocks waver as Trump threatens unilateral tariffs

By Lisa Kailai Han
CNBC News
June 12, 2025
Category: Finance & Economics
Region: United States

Stocks wavered Thursday as President Trump threatened setting unilateral tariffs on trading partners in two weeks. The S&P 500 added 0.2%, while the Nasdaq Composite gained 0.1%. …Wall Street awaits further developments on trade policy, especially between the U.S. and China, as talks between the two countries have been a focal point this week. Trump said Wednesday he would be willing to extend a July 8 deadline for finishing trade talks with countries before higher US levies take effect, but that the extensions may not be necessary. …“We still think the primary driver for market direction and to break out to all-time highs would be some resolution for tariffs and how they interlink with the budget and the Fed. And we see a lot of headlines about negotiations or pauses or frameworks, but we still haven’t seen a single signed trade deal,” said Tom Hainlin at U.S. Bank Asset Management Group.

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How NAHB is Working to Overcome NIMBY Attitudes

The National Association of Home Builders
June 10, 2025
Category: Finance & Economics
Region: United States

NIMBYism often attempts to preserve the status quo at the expense of opportunity, equity and sustainability. Overcoming this opposition means an investment in neighborhoods that can welcome new families, support local businesses and ensure that people of all backgrounds can have a place to call home. When faced with a public opposed to a project, it can be helpful to engage community leaders or members who have previously benefitted from a similar type of housing. …NAHB provides resources and assistance to members and state and local associations. For example, NAHB recently supported the Home Builders and Remodelers Association of Massachusetts (HBRAM). …Through support from NAHB’s Legal Action Fund, HBARM highlighted the broader implications of zoning reform and how housing shortages affect everyone. 

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Fannie Mae Home Purchase Sentiment Index rose in May

Fannie Mae
June 9, 2025
Category: Finance & Economics
Region: United States

WASHINGTON, DC – Fannie Mae published the results of its May 2025 National Housing Survey® (NHS), which includes the Home Purchase Sentiment Index® (HPSI), a measure of consumer sentiment toward housing. Month over month, the HPSI increased 4.3 points to 73.5. Year over year, the HPSI is up 4.1 points. …Five out of six HPSI components increased this month, namely Buying Conditions, Mortgage Rate Outlook, Selling Conditions, Job Loss Concern, and Home Price Outlook. Change in Household Income was the only HPSI component that decreased this month. …The net share of consumers (-48%) who say it is a good time to buy a home increased 7 percentage points since last month. The share who say it is a good time to buy increased 3 percentage points (26%), while the share who say it is a bad time to buy (74%) decreased 3 percentage points.

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Bill Championed by NAHB Would Address Major Flood Mapping Issue in California, Nationwide

By Evan Loukadakis
The National Association of Home Builders
June 6, 2025
Category: Finance & Economics
Region: United States

Legislation that NAHB has been seeking for two years that would allow new housing developments to go forward in California and bring down insurance costs for home buyers and home owners was introduced in Congress. This legislation represents an important win. …The Keeping Homeownership Costs Down Act (H.R. 3800) would allow the Federal Emergency Management Agency (FEMA) to resume processing certain floodplain map changes to allow new home building projects to advance and help ease affordability challenges. In May 2023, FEMA suspended processing of Letters of Map Revision (LOMR) and Conditional Letters of Map Revision (CLOMR) in dozens of California counties. The practical effect of this suspension is that it increases the ownership costs for tens of thousands of new housing units. …Although this mapping issue has primarily affected California, this legislation would ensure similar problems are not repeated in other states that have federally protected species that reside within floodplain areas.

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US home prices to rise 3.5% this year but tariffs will hinder new construction: Reuters poll

By Sarupya Ganguly
Reuters
June 3, 2025
Category: Finance & Economics
Region: United States

U.S. home prices will rise steadily over coming years on an expected further decline in mortgage rates, according to property experts in a Reuters survey who expressed a near-unanimous view President Donald Trump’s tariffs would hinder affordable home construction. The same analysts had said three months ago that affordability and turnover in the market would improve, an upbeat outlook hinging on expectations the Federal Reserve will resume cutting interest rates after staying on the sidelines all year. That optimism has since been tempered with Congress passing a sweeping tax-cut and spending bill estimated to add roughly $3.3 trillion by 2034 to an already-enormous $36.2 trillion debt pile, according to nonpartisan think tank the Committee for a Responsible Federal Budget. Long-term bond yields have spiked higher, limiting scope for a decline in mortgage rates.

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Environmental Protection Agency Commits to Reducing Regulatory Burdens for Home Builders

National Association of Home Builders
June 2, 2025
Category: Finance & Economics
Region: United States

National Association of Home Buildiers (NAHB) Senior Officers sat down with Environmental Protection Agency (EPA) Administrator Lee Zeldin on May 29 to discuss EPA’s deregulatory priorities benefiting the home-building industry. Zeldin told NAHB Chairman Buddy Hughes, First Vice Chairman Bill Owens and CEO Jim Tobin that he is committed to fulfilling President Trump’s directive to reduce federal regulatory burdens upon larger U.S. economy while also improving the federal permitting process across all EPA programs. As an example Zeldin pointed to his deregulatory announcement on March 12, 2025, identifying more than 30 federal environmental regulations finalized during the Biden administration that will be repealed or significantly revised. One of the Biden administration’s regulations directly impacting the home-building industry is the regulatory definition of “waters of the United States” (WOTUS) under the Clean Water Act. That same day, NAHB members were actively participating in an EPA public listening session in Salt Lake City on revising the current WOTUS regulatory definition.

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Tariff Whiplash Has Already Hurt Housing Affordability

National Association of Home Builders
May 29, 2025
Category: Finance & Economics
Region: United States

The on-again, off-again nature of the tariffs and threats of higher levies have already had a negative effect on housing affordability by creating business uncertainty and disrupting building material supply chains. When asked about the impact of tariffs on their business in the NAHB’s April survey, 60% of builders reported their suppliers have already increased or announced increases of material prices due to tariffs. On average, respondents reported that suppliers increased their prices by 6.3% in response to announced, enacted or expected tariffs. …And in a May survey of builders, 78% reported difficulties pricing their homes recently due to uncertainty around material prices. NAHB estimates that approximately 7% of all goods used in new multifamily and single-family residential construction originated from a foreign nation in 2024. The cost of building materials has already risen by 41.6% in the five years since the pandemic, which is far higher than the rate of inflation (21.9%).

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Hit by Trump trade wars, US economy falls 0.2% in first quarter, an upgrade from initial estimate

By Paul Wiseman
The Associated Press in the Canadian Press
May 29, 2025
Category: Finance & Economics
Region: United States

The US economy shrank at a 0.2% annual pace from January through March, the first drop in three years, as President Trump’s trade wars disrupted business… a slight upgrade of its initial estimate. First-quarter growth was brought down by a surge in imports as companies in the United States hurried to bring in foreign goods before the president imposed massive import taxes. The January-March drop in gross domestic product — the nation’s output of goods and services — reversed a 2.4% gain in the fourth quarter of 2024. Imports grew at a 42.6% pace, fastest since third-quarter 2020, and shaved more than 5 percentage points off GDP growth. Consumer spending also slowed sharply. And federal government spending fell at a 4.6% annual pace, the biggest drop in three years. …From January through March, business investment surged 24.4%. An increase in inventories — as businesses stocked up ahead of the tariffs — added more than 2.6 percentage points to first-quarter GDP growth.

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US home sales and building slump in the face of uncertainty

By Laurel Wamsley
National Public Radio
May 27, 2025
Category: Finance & Economics
Region: United States

Economic uncertainty has produced a double whammy for the housing market: sluggish home sales and plodding construction. Last month was the slowest April for existing home sales in 16 years — a sharp rebuke to hopes that this spring the housing market would recover after two very sleepy years. In a May survey of builder confidence, home builder sentiment dropped to a level last seen in November 2023. The problem, as ever, is the cost of housing: Home prices are out of reach for many who would like to buy. And the tariff drama under President Trump has both made it more expensive to build new homes and made the future more unpredictable for would-be homebuyers. The result is a country where builders want to build, and buyers want to buy — but the future is too much in doubt.

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US Building Material Price Growth Minimal in April

By Jesse Wade
NAHB – Eye on Housing
May 27, 2025
Category: Finance & Economics
Region: United States

Prices for inputs to new residential construction—excluding capital investment, labor, and imports—fell 0.4% in April, following a (revised) increase of 0.8% in March. …The inputs to the New Residential Construction Price Index grew 0.6% from April of last year. …Energy input prices were up 0.1% between March and April but were 17.6% lower than one year ago. Building material prices were down 0.3% between March and April but up 2.2% compared to one year ago. Energy costs have continued to fall on a year-over-year basis, as this marks the ninth consecutive month of lower input energy costs.

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How uncertainty around tariffs is affecting housing affordability

By Ken Magri
Solving Sacramento
June 9, 2025
Category: Finance & Economics
Region: United States, US West

SACRAMENTO, California — There is already a crisis of available and affordable housing in America. But now, political uncertainty and economic volatility could make home buying even less attainable.  …The proposed Trump tariffs on building materials are creating financial volatility that could send housing prices up significantly. Since his announcement of widespread tariffs on April 2, the additional costs imposed on imported lumber, gypsum, aluminum, electronics and other related materials delayed the nation’s housing starts in April, according to NAHB. …“More tariffs equal more anxiety and uncertainty for American businesses and consumers,” said David French, at the National Retail Federation. “Tariffs are a tax paid by the U.S. importer that will be passed along to the end consumer. …One of the largest material costs for housing construction is lumber, and the largest amounts are imported into the US from Canada.

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Home sales and building slump in the face of economic uncertainty

By Laurel Wamsley
Oregon Public Broadcasting
May 28, 2025
Category: Finance & Economics
Region: United States, US West

Economic uncertainty has produced a double whammy for the housing market: sluggish home sales and plodding construction. Last month was the slowest April for existing home sales in 16 years — a sharp rebuke to hopes that this spring the housing market would recover after two very sleepy years. In a May survey of builder confidence conducted by Wells Fargo and the National Association of Home Builders, home builder sentiment dropped to a level last seen in November 2023. The problem, as ever, is the cost of housing: Home prices are out of reach for many who would like to buy. And the tariff drama under President Trump has both made it more expensive to build new homes and made the future more unpredictable for would-be homebuyers. The result is a country where builders want to build, and buyers want to buy — but the future is too much in doubt.

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Exports of Southern Pine lumber fell 12% in Q1, 2025 compared to Q1, 2024

Southern Forest Products Association
May 26, 2025
Category: Finance & Economics
Region: United States, US East

Q1 2025 exports of Southern Pine lumber (treated and untreated) were 12% behind the same quarter in 2024 at 122 MMBF, but up 2% over the fourth quarter of 2024. On a monthly basis, Southern Pine lumber exports were down 20% in March over March 2024 but up 4.6% over February 2025. When looking at the report by dollar value, Southern Pine exports are down 7% to $50 million in the first quarter of 2025 compared to the same period in 2024, but down 17% over the fourth quarter of 2024. Mexico led the way at $13.2 million, followed by the Dominican Republic at $10.4 million, and Canada at $4.3 million. The total global value in March hit a six-month high of $18 million. Treated lumber exports, meanwhile, were down 19% compared to the first quarter of 2024 at $28 million and down 6% over the fourth quarter of 2024.

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Japan Still Sees Gradual Economic Recovery Despite Trump Tariffs; Trade Conflicts Continue Clouding Outlook Demand

Trading View
June 11, 2025
Category: Finance & Economics
Region: International

Japan’s government remains cautiously optimistic, sticking to its long-held conviction that the economy should be able to weather both external shocks on already sluggish growth and a cost-led surge in domestic inflation, repeating it is expected to stay on a “modest recovery” track. In its monthly report for June released Wednesday by the Cabinet Office, less than three weeks after the prior report, the government repeated that the economy is “recovering at a moderate pace but confronted by the uncertainty arising from the US trade policy.” Tokyo appears to have brought forward the release of its monthly report by about two weeks so that it could officially update the status of Japan’s economy before the leaders of the Group of Seven major nations gather for their annual summit at Kananaskis in the Canadian province of Alberta from June 15 to June 17. 

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Forestry companies shift focus to pine to meet demand for housing timber

ABC News Australia
June 4, 2025
Category: Finance & Economics
Region: International

An increasing demand for timber to meet Australia’s housing targets is set to drive a change in focus for one of Australia’s largest forestry regions. The Green Triangle, situated across the southern South Australia–Victorian border, has about 334,000 hectares of plantations, representing 17 per cent of Australia’s forestry industry. The region grows a mix of softwood timber, primarily used in domestic construction, and hardwood, which is often exported as wood chips and used in paper manufacturing. But as Australia looks to meet its goal of building 1.2 million new homes by 2029, investment in softwood is growing fast. “Both the state and the federal governments have incentives in place for industry and private investors to grow radiata pine,” University of Melbourne forest ecologist Rod Keenan said.

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New Forests enters Vietnam with Tavico investment

New Forests
June 4, 2025
Category: Finance & Economics
Region: International

New Forests, a global investment manager of nature-based real assets and natural capital strategies, is today announcing its Tropical Asia Forest Fund 2 (TAFF2) has made its first investment in timber processing infrastructure in Vietnam by investing in the Tavico Group (Tavico), one of the country’s leading suppliers of solid wood lumber and logs. Tavico was founded in 2005 as a log trader and sawn timber mill with annual production capacity of 12,000m3 of lumber per annum, which is equivalent to approximately 800 medium sized houses. Tavico has established a 3,200-hectare FSC certified community forestry program with small holder farmers which provides employment and revenue sharing opportunities for local communities. The investment from TAFF2 will look to expand this program for smallholder farmers in Vietnam.

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