Currently Reading

Toll Brothers CEO Expects Lumber Prices to Remain Low

Advertisement
Building Materials

Toll Brothers CEO Expects Lumber Prices to Remain Low


August 26, 2021
lumber
Photo: romaset | stock.adobe.com

Toll Brothers CEO Doug Yearley told CNBC this week that the effects of dropping lumber prices will be seen in the second half of next year. He went on to add that he believes the low prices will stay low and dropping costs will help builders offset other cost increases. But the supply chain and labor issues facing the industry will continue to extend the time of home construction, and Yearley says that will continue for “a couple more” quarters. Lumber prices are now about $500, $300 less than this time last year.

“The tailwind of lumber coming down is very comforting,” Yearley told CNBC’s Jim Cramer, a day after the company reported better than expected fiscal third quarter earnings. “It’s going to help us. It’s going to drive some margin. But I think it’s going to offset some of the other cost increases that we’re feeling.”

“It’s taken us a little longer to build these houses. There are real supply chain issues. There’s labor issues,” Yearley said. “It took about two weeks longer in our third quarter to deliver a home. We expect that to continue for a couple more quarters as we manage through it.”

Shares of Toll Brothers rose more than 4% on Wednesday to $63.66 each. The stock is up more than 46% so far this year.

Read More
 

Related Stories

Building Materials

Seven Tactics for Managing Supply Chain Challenges

Deryl Patterson of Housing Design Matters shares seven tactics to minimize the stress of dealing with supply chain issues.

Building Materials

Building Material Prices Dipped in August

August marked the first month of building materials price drops this year, decreasing 1%, according to data from the Bureau of Labor Statistics.…

Economics

Builders Struggle to Narrow the Housing Deficit

Builders simply can’t afford to produce more and cheaper houses.

Advertisement
Advertisement

More in Category




Advertisement
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.