The COVID-19 pandemic has caused lumber prices to skyrocket more than 160% since April after a spike in home renovation by cooped-up Americans, according to the National Association of Home Builders.Higher prices are adding about $16,000 to the cost of a new house, said Robert Dietz, NAHB’s chief economist.
“As people started nesting in response to the pandemic, they started undertaking all sorts of home renovation projects,” Dietz said. “At the same time, sawmills started shutting down and have only partially reopened because of social distancing concerns.”
The lumber industry lost 6,000 jobs as a result of the pandemic, and has gained back – on a net basis – only half of those, he said.
“Growing demand for lumber met insufficient supply, and the result has been escalating prices,” Dietz said.
The above excerpts were taken from an article titled Spike in lumber prices boosts construction costs, written on September 4th, 2020 by Kathleen Howley for HousingWire.com