As long as the high demand for new housing and renovations continues, average lumber prices will be relatively high for the foreseeable future. However, that doesn’t mean they won’t dip into more affordable prices in certain seasons. Timing is important in this industry.
This graph from Business Insider will give you an up-close look into lumber pricing over the last 30 months. You’ll notice that while there have been significant peaks in lumber pricing both in summer 2021 and early spring 2022, there have also been months of more forgiving per-unit lumber prices.
The highest price per thousand feet of board since the pandemic started was around $1,700 while the lowest price was around $500.
Why Are Lumber Prices So High?
You hear it a lot lately, the phrase “supply chain issues” is all over the news and in talks with our neighbors. Well, the main reason for high lumber prices is a matter of supply chain. Specifically, it has to do with the demand for product purchases versus the manpower to deliver those products. Transportation for lumber plays a large part in that, as well as general worker shortage along the whole of the supply chain.
How Will Lumber Impact Housing?
We’ve already seen the effects of lumber and supply chain issues on the housing market. Prospective homeowners are adding to the demand as they build, buy, and remodel, and banks are having to increase interest rates for mortgages as the intense competition in the market continues. Of course, banks also have inflation to blame as the rates reach a 30-year high and the highest since the 2009 financial crash
Should I Wait to Build, Buy, or Remodel?
With no perceivable end in sight for the current supply chain environment, your best bet is to plan your home change according to the current prices. This may mean an adjustment of lifestyle or budget. The world as it was prior to the pandemic is now in our rearview mirrors.
Simply put, if you want to purchase or build a new home, or remodel your current home, your chances of facing lumber challenges are just as likely in four months as they are now. You might as well plan accordingly.
Consider Staying Put & Remodeling
Call us biased as home remodelers, but homeowners looking to move but afraid to do so in such a competitive climate can find just as much joy (and investment!) in remodeling their current home. You’d be surprised how much knocking down a wall or updating a bathroom can do. Got an unfinished basement you’ve been ignoring? Maybe it’s time to hire someone to finish it.
Decades of Professional Home Remodeling Services
Honey-Doers provides high-quality residential remodeling, repair, and renovations for the Twin Cities and beyond. We pride ourselves in partnering with clients to transform their ideas into fully realized home projects. Our licensed contractors aim to deliver on expectations while providing clear communication every step of the way.
Use our online form to schedule your free estimate or call us using the number above.