Lumber prices rise almost 250%, consequences for suppliers and buyers

Sawn timber prices are increasing by almost 250%, which affects suppliers and buyers

According to the National Association of Home Builders, wood prices have increased about 250% since April 2020, and suppliers and buyers are feeling the impact. “We’re not getting wood on time because of COVID and the mills are not keeping up with incoming orders,” said Steven Hatton, a distributor at 84 Lumber. “I’ve never seen anything like it.”

Hatton said part of the reason for the higher wood prices is that the logging factories don’t have enough workers. According to the NAHB, the higher prices are due to increased demand and supply restrictions, which are due to a lack of domestic production and cuts in wood mills.

“We’re going to have people call on Monday asking for an offer on a list and we’re going to tell them, ‘Hey, you’ve got seven days and it’s going to go up,'” he said. A sheet of chipboard used to cost around $ 10. Now the price is around $ 60. The NAHB said the price hike resulted in the price of the average single-family home increasing by more than $ 24,000.

Sarah Willie and her fiancée found the perfect lot for their new home in Pevely, Missouri, about 30 miles south of St. Louis. Just days before the down payment was paid, the cost of the house rose by $ 3,000 in a matter of days due to the price of wood.

“A day or two before we got a call from our agent saying, ‘Hey, before you sign this contract, the price of the house went up,'” Willie said. “If we had decided on a bigger house, we would obviously not be building a house at the moment, as the beautiful wood is very expensive.” Hatton said no one was sure when prices could return to normal.

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