People ask how the tariffs will affect the price of our log home packages.
Log homes are by default largely hedged against most tariffs as they are about as American-made and sourced as you can get in any new home construction. Additionally, we as a company have chosen to be vertical integrated. That means we harvest, saw, air dry, kiln dry, and finally mill the logs ourselves. And the logs are all harvested within 150 miles from us. This includes the wall and ceiling paneling, decking, and log siding as well as the stacking logs. Also, to be assured of an available local source in the future, we plant and give away around 50,000 pine tree seedlings annually.
Nationally, 30% of western softwood is sourced from Canada. However, only a small portion of our log home packages, such as subfloors and interior wall framing, is made up of western softwood. And, what’s more, the western softwood framing lumber that we do use, of which some may come from Canada, we have pre-bought enough to last us through 2025.
Very little drywall gets used in a log home but it is one of the primary items that effect other types of homes. Items such as exterior doors and windows are American-made but most likely have some imported parts. Certainly there will be some trickle down indirect inflationary costs.
All things considered, next year or after when we have used up our stock there may be a surcharge of something like 2 to 3% but not nearly the 7% economists are predicting for conventional stick homes. This means that the tariffs will help make log homes more cost effective against conventional stick homes.
But take note; currently here in the US we are an estimated one million homes short of our need. It’s not a matter of if, but when, this pent-up demand breaks loose that we will be in for some major price increases. And if per chance this building boom would happen during the trade war, home price upsurges could become historically unparalleled. Remember the 2021/22 housing demand, when builders didn’t reach around and prices on framing lumber doubled?
That gives us a small window of what may come, tariffs or no tariffs.
.avif)
