High demand, bottlenecks in the supply chain, labor shortages, and tariffs on Canadian lumber imports have all contributed to the high lumber prices seen in the market since 2020. These rising prices have been coupled with supply shortages, with Moody’s Analytics projecting the U.S. does not have enough lumber to build the 1.5 million homes the nation needs. The ongoing lumber price volatility and material shortages are contributing, in part, to a “spike” in home sales and rental prices, according to USA Today article from reporter Terry Collins. In the article, Collins outlines how falling lumber prices alone may not be enough to help housing market prices decrease.

Nine out of 10 new single-family homes built in the U.S. are wood-framed, the NAHB estimates, so savings from lower lumber prices could reach consumers.

But some experts believe that President Biden will have to take action to improve the country’s housing supply and lower prices on homes and materials, including lumber.

Last month, the president announced an action plan to spur the supply of affordable housing amid a 40-year-high inflation rate. He hopes to close the “housing supply gap” within five years.