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01-17-22 | News

Rising Lumber Costs Adds $18,600 to the Price of a New Home

Lumber Prices Disrupt Housing Market Once more

Caption: Amid the residual effects of the early days of the pandemic, lumber costs are adding $18,600 to the price of a new home.

After several months of cooling prices, lumber once again is soaring and disrupting the housing market and affordability.

Over the last several months, lumber prices have nearly tripled and have in turn caused the price of an average new single-family home to increase by more than $18,600, according to NAHB standard estimates of lumber used to build.

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This lumber price jump has added nearly $7,300 to the market value of the average of a new multifamily home and has added $67 a month to rent a new apartment.

According to Random Lengths, as of December 29, 2021, the price of framing lumber hit $1,000 per thousand board feet. The cost is now a 167 percent increase since late August.

Due to unprecedented supply and demand ebbs and flows set on by the pandemic, production struggled to keep up with demand and lumber prices peaked at $1,500 per thousand board feet in May 2021.

https://nahbnow.com/2022/01/latest-wave-of-rising-lumber-prices-adds-more-than-18600-to-the-price-of-a-new-home/

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