In a season when most other construction supplies have seen single and double-digit increases, the price of lumber is now down by 30% for the year.
The latest figures, according to the Bureau of Labor Statistics’ Producer Price Index, have the price of lumber at $780 per thousand board. That’s significantly down from a peak of $1,733 per thousand board reached in the spring of 2021.
That spring 2021 figure, say experts, was in many ways fueled by supply issues. Before last year’s spike, the average price per thousand board was at around $900.
A number of factors are thought to be contributing to lumber’s price drop, notes the real estate publication Real Deal, adding that “rising mortgage rates and growing inflation” have played a part.
How long the prices will remain at the current level, however, is anyone’s guess. “The pressure on lumber prices can be long lasting if the housing market slows down and home prices remain unaffordable,” says the Business Insider.
According to statistics compiled by the Associate General Contractors of America, the overall price of lumber and plywood, after posting an 18% gain last year, dropped 10% in February, and another 1.5% in April.
By Garry Boulard
