News & Media
Street lined with homes under construction
JoSon, Getty Images

High Prices for Lumber? It’s Back

After a summer dip, lumber prices almost tripled over the past four months. Builders say the increase adds more than $18.6K to the price of a new home.

CHICAGO – Following a price dip last spring and summer, lumber costs have nearly tripled over the past four months.

The National Association of Home Builders (NAHB) says the increase pushed the price of an average new single-family home more than $18,600 higher. It also added nearly $7,300 to the price of an average new multifamily home, which would translate into $67 more per month in rent for a new apartment.

Lumber’s price volatility started in April 2020 when the pandemic prompted a reduction in production at sawmills, followed by an unexpected surge in demand as new-home construction and remodeling sparked shortages. Lumber prices reached a record of $1,500 per thousand board feet in May 2021.

However, recent challenges have once again hurt the lumber supply: Ongoing supply chain disruptions, the doubling of tariffs on Canadian lumber imports, and the wildfire season in the western United States and British Columbia. On Dec. 19, the price of framing lumber was $1,000 per thousand board feet – a 167% increase since late August.

Builders use lumber throughout the building process, for structural framing, sheathing, flooring, interior walls and ceiling finishes, cabinets, doors, siding, garages, porches, railing, fences and more.

Source: “Latest Wave of Rising Lumber Prices Adds More Than $18,600 to the Price of a New Home,” National Association of Home Builders (Jan. 4, 2022)

© Copyright 2022 INFORMATION INC., Bethesda, MD (301) 215-4688