The price of lumber has increased 80% since mid-April to an average price of $627 per thousand board feet because of insufficient domestic production and tariffs on Canadian sources, according to www.nahb.org. This increase will add thousands of dollars to the cost of a typical newly built home, which will constrain housing supply, worsen affordability issues and limit housing’s economic effects.
The problem started when the spread of COVID-19 forced a stop to lumber production and froze supply. At the same time, many nonessential businesses in all sectors throughout the U.S. were shut down, including lumber mills. Shipments from Canadian mills have been delayed because of closing the U.S.-Canada border—also a COVID-19-driven issue.
Similar to the toilet paper shortage a couple of months ago, the lack of pressure-treated lumber isn’t isolated to one region. According to a July 27 article in Erie Times-News, lumber mills are about four to six weeks behind in shipments while demand has increased. Compounding the issue, people working from home are committing to more home remodeling projects, such as new decks and fences.
