Lumber Prices Soar 250% as Pandemic Pushes Home-Building Higher

Lumber prices have surged by almost 250% since April 2020, significantly threatening housing affordability across the US.

According to the National Association of Home Builders, the latest skyrocketing increase in lumber prices threatens to raise the cost of a single-family home by nearly $36,000. The price of a thousand-foot board has surged by more than 40% in the last month to above $1,450 on Friday. “The market is in trouble. It could spiral out of control in the next few months,” said Fastmarkets RISI senior economist Dustin Jalbert, and later cited by Fortune.

Jalbert attributes the bullish rally in lumber prices to backlogged supply, which is struggling to keep up with rising demand amid ongoing home improvement and home construction projects. Aside from that, the price hike is also partly due to supply chain disruptions, which started at the beginning of the pandemic when lumber yards were forced to shut down.

At the same time, adverse weather conditions that forced refinery shutdowns in the Gulf Coast also contributed to shortages of other building supplies. As a result, lumber prices are expected to continue on their upward trajectory, and will not cool until demand tapers off— which is likely not going to happen until the abnormal home building and renovation season subsides.


Information for this briefing was found via NAHB and Fortune. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

U.S. Hikes Duties On Canadian Softwood Lumber To 14.54%

The United States has significantly increased duties on Canadian softwood lumber imports, escalating a long-standing...

Wednesday, August 14, 2024, 11:50:00 AM

CMHC: Annual Pace of Housing Starts Fall Nearly 20% in April

Canada’s annual pace of housing starts declined almost 20% in April as the number of...

Sunday, May 23, 2021, 11:00:00 AM

Canada Addresses Real Estate Crisis By… Banning Foreign Ownership?

The Canada Mortgage and Housing Corporation has issued regulations regarding the restriction on foreign homebuyers...

Thursday, December 22, 2022, 10:31:07 AM

Canada’s Liberal Government To Ban Foreign Homebuyers

The Canadian government is set to unveil a ban on foreign homebuyers within their budget...

Wednesday, April 6, 2022, 09:12:41 PM

US Home Construction Suffers Significant Decline in April

Not only are there significantly fewer houses being sold in the US during the financial...

Wednesday, May 20, 2020, 07:10:00 PM