Up, Down, Boom, Bust, What’s Next With Lumber Prices?

construction lumber prices

When the price of lumber rose 300%, many of us wondered if that would be another new normal: pandemics and exorbitant lumber prices. It took Fortune eight charts to explain the skyrocketing lumber prices that recently fell to earth.

Lumber prices peaked at $1,515 per thousand board feet, then plummeted to $399 and rose to $630 in September 2021. You can see why there might be some confusion.

Riding the Wood Roller Coaster

By March 2021, monthly housing starts were at 1.7 million…all that building caused demand for framing lumber, OSB (oriented strand board), and plywood to soar. Lance Lambert, Realtor.com data journalist

Roller coaster enthusiasts say wooden roller coasters are a rough ride but always worth it. The lumber prices roller coaster ride has been equally rough.

Spring 2021 saw lowered interest rates and another housing market run. Available suburban houses were grabbed up by eager homebuyers that no longer had to commute to the city for work. The housing shortage led to an almost frenzied demand for new homes. And lumber.

With another pandemic looming, homeowners went on a home improvement spree. They began DIY (do-it-yourself) projects that required construction materials, like wood.

At the same time, and equally surprising, we were walloped with a severe worker shortage. Sawmills and lumberyards struggled to fill increased orders with a reduced workforce.

Managing Construction Projects: Be More Proactive

Something good may yet come from riding the wood roller coaster this year.

Granger Hassmann of Adolfson & Peterson Construction says uncertainties can force us to become more proactive. You can’t prepare for delays on the manufacturing side, so “considering different materials, systems, or manufacturers is crucial.”

It doesn’t matter what’s next with lumber prices if you’re proactively investigating materials options. Rather than waiting for anything, “You have to be more proactive,” said Hassman. A procurement cycle might have been 6-12 weeks. “Now it’s maybe a week. It’s just all about speed and management.”

If you’d like to be more proactive with business development, call 800-925-6085 or contact Construction Monitor. We customize data analytics to increase business – your business.