U.S. new home inventories surge amid tariff panic and 14.2% drop in housing starts

Posted on May 7, 2025   |  

Lumber futures fell below $550 per thousand board feet, the lowest level since June 2024.

The drop followed winter restocking and panic buying triggered by expected tariffs under Trump, which clashed with a 14.2% decline in U.S. single-family housing starts in March.

U.S. housing starts fell to 940,000 units, pushing new home inventory levels to nearly 8 months of supply.

In contrast, March saw lumber prices spike to $682, a 30-month high, as the construction market rushed to stock up before tariffs.

The price surge was driven by panic buying of spruce-pine-fir (SPF) and southern yellow pine (SYP)—key materials in homebuilding and decking.

SPF and SYP prices reached their highest in over a year, reflecting fear-driven demand despite a declining housing market.