Lumber Prices Going Up
Lumber comes down with a cry of “timber,” but the prices have been going up for the past three to four years. Small price increases due to inflation are normal, but lately the price of lumber has increased quite drastically. What’s the cause of this spike, and what will the effects of increased lumber prices be?
Fires, Storms, and Covid Closing Lumber Mills
The main cause of the price hike in lumber these past few months has been COVID and natural disaster related, which seems to be how it is with everything this year. Due to labor shortages shutting down mills, lumber companies aren’t able to work at full capacity. Many have been forced to close due to being unable to keep enough staff on hand to ensure the safety of the workers. Naturally, this means there’s a lot less wood being processed into lumber. This has combined with the major fires and other natural disasters happening across the US to drastically reduce the amount of lumber to replacing homes and buildings made serious price increases and little to no lumber available in some areas.
More DIY Projects
Early in 2020 a lot more people started working from home and saw the potential in home and yard projects. Becoming a weekend warrior or hiring for remodeling projects the home improvement and building materials saw a jump in sales. With demand up and supply down, a price increase was inevitable. Now, as lumber stock runs short, the prices are skyrocketing.
Bad For Home Builders
If you’re been looking to build a new home recently, this price hike may make it a bad time for building. The price of lumber makes the cost of building a home more than normal, but in ways that don’t increase the permanent value of the home. The cost of building a new home now will be significantly less than what you could conceivably sell it for in the future, making it a bad investment if you ever plan to or need to move.
You May Notice Surcharging
The price was going to rise just because of the rules of supply and demand, but that doesn’t mean all price hikes are permanent. According to a reputable local shed builder in Cache Valley, prices for sheds and temporarily increased to make up for in the cost of lumber.
It still more cost-effective for those wanting items such as a shed to go through major brands who buy in bulk than become a pro do it yourself improvement specialist. Cache Valley Sheds (a distributor for Old Hickory Sheds) buys lumber in the hundreds of truck loads allowing them to have better pricing for their retail customers than retail customers can get on their own.
They advise that if you need to do a project that involves buying lumber, it might be best to go through a company that can take advantage of bulk sale prices. If that’s not an option, shop around and make sure that the price you’re being given is actually reasonable.
Patience Is a Virtue
When it comes to projects that require lumber, it would be a good idea to wait. When the outbreak passes and lumber companies can get back to work, supply will increase and prices should go back down. Waiting it out for smaller projects will help reduce demand, which will speed up price drops when things start to get back to normal. Trying to get projects done now is simply going to be more expensive than normal. Unless it’s absolutely necessary – such as for repairs – exercise patience and let the supply and demand normalize a bit.