What Do The Lumber Price Increases Mean For My Project

By: Rachael Boyer

May 3, 2021

Have you heard the news that lumber prices have skyrocketed? It’s hard to avoid, with countless articles being published about the unprecedented price increases. From people turning to attempting to mill their own lumber, to other homeowners having to put off building projects – it can seem like an intimidating hurdle to overcome for your home’s remodel or new build. But we are here to tell you that postponing your project is actually not a solution to bypassing the lumber price increases – and could ultimately be detrimental in the long run!

First of all, let’s look at why lumber prices are so high in the first place. With more new homes being built than ever, there is a significant market shortage. Typically new homes make up about 10% of the market – but currently we are seeing nearly 25% of homes on the market are new builds. This means lumber availability is low, driving up the cost. In fact, lumber is up over 340% from last year’s pricing – with no indication of a decrease in the foreseeable future.

Another factor impacting the price of lumber is (no surprise here) COVID. Lumber production took a major hit during the pandemic as the housing market was expected to experience a slow down, when in fact the opposite happened. Post-pandemic priority shifts are causing the demand for single-family homes to jump – affecting the supply and demand situation referenced above. Because there are no signs of a slow-down with these trends, prices are expected to continue to climb.

When making your home remodel or new build financial decisions, there are so many factors at play. A major one to consider right now are the interest rates. With the ability to take advantage of low rates, you can actually offset some of the construction cost increases – specifically when it comes to lumber. With the material cost increases continuing to trend upward, closing a contract now to lock in pricing is a wise strategy to allow you to accomplish the goals you have for your home before another significant price hike comes into play.

We can help you navigate this complex market and make decisions that make sense for your family and your home’s return on investment. Perhaps a reconfiguration of your layout will give the space and flow you need versus building that new addition. Or our financial partners can provide the financing solutions you need to tackle your project while taking advantage of fantastic interest rates. Our unique estimating process provides you with the detail you need to understand where your money is going and how the budget is allocated – allowing you to work with us on prioritizing the pieces of your project to ultimately create the home you’re dreaming of!

Do you have questions about the lumber cost increases? Wondering how to start a major home project in the midst of a post pandemic market? We are here to help! Contact us via our remodeling form here: https://homeauthorityinc.com/remodel-form/

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