03 Jun New Build costs are rising- Checkout my new buyer discounts!!!
2x4s are now $15-16 a board – 2 years ago they were $2.50- Crazy
2020 has been a year of highs and lows for the lumber industry.
Early on in 2020, when the pandemic was just starting to gain global publicity, lumber prices slumped. Starting in early March, and continuing on through mid-June, prices plummeted and held at a relatively low mark.
The initial slump was a product of the global shutdown in response to the novel Corona Virus outbreak. Construction operations in most locations were shut down, and lumber mills and other processing facilities were left with an excess supply of material. So, are you wondering what caused lumber to increase from roughly $250 per 1000 board feet to over $850 per 1000 board feet?
We’ve seen some of the lowest interest rates in recent history over the past few months in the US as a response to the fragility in the economy.
Low-interest rates for both home mortgages and new construction financing led to a boom in the building and remodeling industries when businesses opened their doors in June.
The boom in the building/remodeling industries turned the tables on the lumber industry. Mills and other processing facilities went from having an excess supply of wood to a shortfall in what seemed like a moment’s notice.
Ultimately, as the demand for lumber continued to increase over the past few months, supply has not been able to catch up, resulting in an increase in lumber’s cost by 340% or more in particular locations.