SEATTLE (Scrap Monster): The U.S. lumber prices have nearly tripled over the past one year. The prices in the U.S. and Canada are seen surging non-stop, as supply continues to remain scarce.
The most recent analysis by the National Association of Home Builders (NAHB) suggests that the soaring lumber prices have hiked the price of an average new single-family home by almost $35,872. Furthermore, they have added nearly $13,000 to the market value of an average new multifamily home, making it difficult for people to afford such homes.
For instance, the Random Lengths prices for the week ended April 23rd puts framing lumber prices at around $1,200 per thousand board feet. The prices have surged higher by 250% over the previous year. It must be noted that prices were roughly around $350 per thousand board feet during April 2020. The upward price trend in Western SPF lumber persisted during the week.
NAHB attributed the surge in lumber prices to a number of factors. The coronavirus pandemic-related restrictions led to reduced production by several mills last spring. The mills did not ramp up production in the subsequent months, when demand started showing gradual recovery. Also, the lumber manufacturing sector failed to anticipate the massive uptick in demand in the post-Covid season.
The lumber prices could be brought under control only by boosting production, said NAHB.
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