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.

How much is 1000 Board of lumber?

After the association released its calculations earlier this month, lumber prices have only continued to climb, jumping 15% to $1,192 per 1,000 board feet last week—the highest level since June. That’s still well below the $1,514 seen last May, after sawmills curtailed production in anticipation of weak demand during the pandemic.