Lumber, up 40% in 2021, hits record
The relentless rise in lumber prices shows no signs of abating as the pandemic keeps people at home, spurring a home renovation boom.
Lumber futures climbed to a record $1,004.90 per 1,000 board feet Thursday, rising for the eighth session in nine. Prices have climbed about 40 percent this year, fueling concerns for homebuilders across the U.S., with the biggest industry group calling on the Biden administration to help boost supply.
Prices have been spurred by strong demand amid a boom in home remodeling and construction fueled by stay-at-home orders. The onslaught of demand has handicapped producers’ abilities to restock inventories quickly enough, further supporting prices.
Earlier this month, the National Association of Home Builders urged the U.S. government to help improve supplies by removing import tariffs on Canadian lumber.
Lumber’s surge this month is “adding thousands of dollars to the cost of a new home and causing some builders to abruptly halt projects at a time when inventories are already at alltime lows,” Chuck Fowke, the group’s chairman, said in a report Wednesday.
With homebuilding and renovation projects picking up in the spring, that could further exacerbate demand as producers across North America face timber and staffing constraints, industry officials said.