Volatile lumber prices are once again rattling the U.S. housing market, squeezing builders and threatening to exacerbate an already dire affordability crisis. Softwood lumber prices in April surged 23% year-over-year, while futures rose sharply in early 2025 amid fears of increased U.S. duties and widespread sawmill closures across North America, according to the National Association of Home Builders. This has weighed heavily on major homebuilders such as Lennar, D.R. Horton and Toll Brothers, which have all seen their stocks slump this spring. …“The unpredictability of lumber prices adds serious complexity to planning and budgeting,” said Steve Martinez, of Idaho-based Tradewinds General Contracting. …Beyond homebuilding, higher lumber costs are hitting renovations, fencing and interiors. The US Forest Products annual market review found that U.S. lumber production inched up… but demand continues to outpace supply. Environmental regulations, aging forests and labor constraints compound the challenge.