MOBILE, Alabama, Jan. 14, 2022 — Experts forecast lumber prices to continue rising well into 2022, following supply shortages resulting from the Covid-19 pandemic.
Lumber prices have nearly tripled in the last four months, causing the average price of a single-family home to increase by more than $18,600, according to the National Association of Homebuilders.
The price of framing lumber topped $1,000 per thousand board feet on Dec. 29. That’s a 167-percent increase since late August, according to Random Lengths, an organization that provides price assessments for the wood products industry.
Why Lumber Prices Have Surged
Prices began to rise in April 2020, when production at sawmills declined in anticipation of reduced demands.
Experts who forecast lower demand for new homes and residential remodeling projects missed the mark, but that was just one problem.
After the Covid-19 pandemic hit, quarantine life changed everything. While more people than ever tackled home improvement projects, lumber mills failed to ramp up production in time to meet the demand of do-it-yourselfers.
Lumber prices peaked at a record-breaking $1,500 per thousand board feet in May 2021, before beginning a gradual decline through late August.
What to Expect in 2022
Three factors are contributing to the increase in U.S. lumber prices:
• Supply chain disruptions
• Doubling of tariffs on Canadian lumber
• An unusually strong summer wildfire season
But there is hope.
The National Association of Home Builders is working with the White House, Congress and lumber producers to resolve lumber supply chain disruptions, increase production and drive down prices.
Click here to read more about their efforts to lower lumber prices.