The skyrocketing US lumber prices have pushed up the price of an average new single-family home by $ 35,872, according to data from the National Association of Home Builders (NAHB).
Lumber prices have tripled in the past 12 months, with lumber hitting around $ 1,200 per thousand board feet as of the week ending April 23, according to Random Lengths. This is a 250% increase from April 2020, when the price was around $ 350 per thousand feet. Like lumber, the prices of other building materials have been rising steadily since last year and are also scarce.
Soaring prices also added nearly $ 13,000 to the market value of an average multi-family home, meaning households are paying an additional $ 119 per month. In February, the NAHB reported that soaring prices had caused the average price of a new home to rise by $ 24,000.
âThis unprecedented price spike is hurting American home buyers and builders and hampering housing and economic growth,â said NAHB Chairman Chuck Fowke. âThese wood price increases are clearly unsustainable. Policymakers need to examine the timber supply chain, identify the causes of high prices and supply constraints, and seek immediate remedies that will increase production. “