Currently Reading

Lumber Veteran Sees Holding Off on Construction as 'Sensible'


Lumber Veteran Sees Holding Off on Construction as 'Sensible'

June 9, 2021
Lumber yard
Photo: Nomad_Soul |

A National Association of Home Builders’ survey found 19% of builders are delaying building in order to mitigate high lumber costs, and one lumber industry veteran calls that a “sensible decision.” Chief Operating Officer at Sherwood Lumber Kyle Little told CNBC that there is no reason not to hold off on projects if possible, and price relief will likely come in the next six to 12 months. Still, price relief does not mean a return to pre-pandemic lumber prices. Lumber prices are up more than 200% compared to last year, but July lumber futures dropped by more than 5% on Tuesday to $1,158 per thousand board feet.

Despite the recent declines, lumber remains up more than 200% in the past 12 months.

In late May, Little told CNBC he expected the current lumber cycle, featuring volatile trading and elevated prices, to remain for “the foreseeable future.” At the time, he stressed that prices could come off their highs but still be above historic averages.

He reiterated that view Tuesday, saying the company’s forecast “really has not changed.”

“We’re in month number 12 of what we believe to be a 24-to-30-month ... cyclical bull wave,” Little said. “We really believe the new three-year mean will be much, much higher — almost two times than what we’ve seen the previous 20 years.”

The sharp move higher in wood prices has added cost to projects and was cited as one factor behind a drop in housing construction that was reported in April.

Read More

Related Stories

Housing Markets

Where are Single-Family and Multifamily Permits Rising?

All 50 states experienced an increase in single-family permits in April compared to one year prior, but multifamily permits were much less stable…

Building Materials

Lumber Falls to Lowest Price Since March

Lumber prices dropped 5% on Friday to the lowest price since March and 37% since prices hit a peak in May. Lumber futures decreased for the eighth…


Multifamily Construction Posts Strong Suburban Growth

Single-family construction continues to ramp up in low-density, more affordable markets to meet demand, but the National Association of Home…


More in Category


Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.