Why is the price of lumber so high?

Wood is fairly abundant, in North America, especially in the southern forests. Modern mills are very efficient at turning logs into 2x4s and sheets of plywood. Lumber and plywood prices are so high now because of the short-run dynamics of demand and supply. Wood demand shot up in the summer of pandemic.

What is the current cost of lumber?

The cost of lumber and wood products accounts for one-third of the costs of materials used to build a home. A typical 2,000 square-foot-home uses nearly 16,000 board feet of lumber and 6,000 square feet of structural panels, such as plywood. At $400 per 1,000 board feet, the lumber package for a 2,000-square-foot-home costs nearly $10,000.

Why are lumber prices skyrocketing?

Wood is typically used for building roofs. Now it’s known for blasting through them. Lumber prices are up nearly 260% since April 2020, following a perfect storm of surging demand and diminished supply. And it all started with a simple backlog… At the start of the pandemic, sawmills anticipated weak demand and limited production by up to 30%.