After months of fluctuating prices, lumber is a hot commodity yet again with a 167% price increase from late August to December 29, 2021, according to NAHBNow. Soaring rates have nearly tripled over the past four months, causing the price of an average new single-family home to rise by over $18,600.
Initial lumber price volatility is attributed to slow production during the first months of the COVID-19 pandemic, but the recent upsurge is due to ongoing supply chain disruptions, increased tariffs on Canadian lumber imports into the U.S. market, and a strong wildfire season depleting woodlands in British Columbia and the western U.S.
Over the past four months, lumber prices have nearly tripled, causing the price of an average new single-family home to increase by more than $18,600, according to NAHB standard estimates of lumber used to build the average home. This lumber price hike has also added nearly $7,300 to the market value of the average new multi family home, which translates into households paying $67 a month more to rent a new apartment.
According to Random Lengths, as of Dec. 29, the price of framing lumber topped $1,000 per thousand board feet — a 167% increase since late August.
Related Stories
Building Materials
Building Materials Prices Are Rising as Demand for Construction Increases
Prices for in-demand building materials are softening from their mid-pandemic peaks, but as new-construction demand rises, those costs are unlikely to see significant declines
Building Materials
Construction Material Prices Fell for the Second Straight Month in April
Construction input prices are falling after the pandemic’s historic inflation rates, and these materials are seeing the biggest annual price changes
Home Design
Is 2023 the Year of Tile?
New tile trends focus on wellness, resilience, and stylish interior design