Currently Reading

Supply Disruptions and High Demand Spark Dramatic Leap in Lumber Prices

Advertisement

Supply Disruptions and High Demand Spark Dramatic Leap in Lumber Prices


May 18, 2020
Lumber yared inventory check
By Tony Marturano

How much wood could a woodchuck chuck if a woodchuck could chuck wood to the nearest home improvement store? Not enough to keep up with bored DIYers during the coronavirus pandemic. Lumber rose 6.3 percent to $406 per thousand board feet for the week ending May 1, according to NAHB. This is the first time since March 20, 2020 that the Random Lengths Framing Composite Price topped $400. Supply chain disruptions coupled with increasing demand for at-home projects caused lumber prices to surge, and experts say that the lumber mills will have to ramp up construction to meet the demand of the home building industry once the delayed busy season goes into full swing post-pandemic. 

Rising demand stemming from a surge of do-it-yourself projects from consumers working at home coupled with restricted supply due to lumber mills operating at a diminished capacity have led to a recent upsurge in lumber prices. The latest Random Lengths Framing Composite Price for the week ending May 15 rose by 6.3% to $406 per thousand board feet — the first time the index topped $400 since March 20, 2020.

Framing lumber prices have increased 13% since May 1 — the largest two-week increase in over a decade and the first increase greater than 10% since the start of the U.S.-Canada Softwood Lumber Dispute in early 2017.

This recent increase in lumber prices comes at a time when the government reported backward-looking data that shows building material prices posted a record decline in April — during the height of the pandemic and before many states rescinded stay-at-home orders and began phased re-openings of local economies.

Read more
 

Related Stories

Building Materials

The Dark Side of the Global Construction Industry

According to a new report by the Grace Farms Foundation, modern slavery is a common piece of the global supply chain. Building materials, such as…

Government + Policy

5 Industry Issues the Election Could Shape

There are several pressing issues affecting the homebuilding industry right now, from labor force to the cost to build, and material shortages.…

Building Materials

Shortages and Booming Builder Activity Push up OSB Prices

A once cheaper alternative to plywood is now the more expensive material. Bloomberg reports that OSB prices hit a record-high of $729 per thousand…

Advertisement

More in Category




Advertisement

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
Subscribe
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.