Bloomberg Daybreak: US Edition Daybreak Weekend: Pfizer Deal, Nobel Peace, Golden Week
Oct 3, 2025
Drew Redding, a U.S. home building analyst at Bloomberg Intelligence, dives into the effects of lumber and cabinet tariffs on construction costs, estimating a $10,000 increase per home. He discusses the strain on smaller builders and the long road to self-sufficiency in lumber production. The conversation also touches on the implications of Pfizer's recent $70 billion deal on drug pricing and the complexities of the Nobel Prize process, including past controversies and the representation issues in science prizes.
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Tariffs Could Add $10k Per New Home
- Tariffs on softwood, lumber and building goods raise construction costs and could add roughly $10,000 per new home according to Bloomberg Intelligence.
- Drew Redding warns smaller builders face planning uncertainty and could delay new production, worsening supply constraints.
Delay Large Builds Without Cost Certainty
- Smaller private builders should avoid committing to long-term production without clearer tariff guidance.
- Plan flexibly and delay new development until input-cost certainty improves to reduce financial risk.
Domestic Lumber Shortfall Is Structural
- The U.S. produces roughly 70% of lumber used domestically and cannot quickly replace Canadian imports if tariffs persist.
- Drew Redding cites the NAHB estimate that doubling domestic capacity could take around a decade.