How Has the Spike in Lumber Prices Increased Home Costs?

Last March, lumber mills across the United States and the world shut down in response to the COVID-19 pandemic. Today, the economy is climbing back—but the aftershocks of last spring are rolling in harder than ever.  Lumber prices have skyrocketed.

As of late April, lumber prices were up 67% from the beginning of the year and a massive 340% higher than one year ago, according to Random Lengths, a tracking firm for wood products.

With homebuyer demand maxed out, real estate markets across the nation are in desperate need of new construction. But if lumber remains as expensive as it is, there’s a real barrier to building homes.

Read more here.