Friday, June 15, 2018

Hey Trump, Thanks for the Tariffs

Blake Allington emails in response to Trump's Lumber Tariffs Will Mean an Increase of Over $6,000 in the Price of New Houses:

I happen to be in process of building a garage.  Started planning last year.

 I have a hard time believing the average house price will only go up $6k.  They must be taking a massive hit in their margins if that is the case.

My garage is only going to be 14’ x 22’ (308 square feet)

Please see word documents “garage materials” and “garage materials 14 months later “ for documentation of this robbery.  I didn’t document every nail, but the vast majority is here.

Original prices were taken as screen shots on 4/17/17.  Latest prices were taken today.  I used identical SKUs from Menards wherever possible.

 Spreadsheet summarizes it.

Overall building cost went up $736.88.  This is 21%.  Lumber cost went up 42%.  Plywood appears to be hardest hit.  Must be very inefficient plywood producers here.

This is $737 less I’m going to spend elsewhere in the economy.

What is seen:  Fat and happy inefficient domestic lumber producers with MAGA hats.

 What is interesting:  Look at the cost increases even in non-lumber building materials.  This is only 14 months apart.  Yikes!

Click on table for larger view


1 comment:

  1. Construction costs have been increasing prior to Trump taking office. My profession is in construction. These increases are IMO due more to increases in building and the home market than they are from the Donald’s tariffs; at least at this point.

    Construction costs had been very low for a long time after the collapse of the roaring 2000’s. Now while there is another boom period suppliers, labor and contractors are increasing their prices. I would guess that for those that worked though the downturn most are just now breaking even for losses taken during the downturn.