Eye On Housing
The prices of building materials rose 0.4% in July (not seasonally adjusted) even as softwood lumber prices increased 2.3%, according to the latest Producer Price Index (PPI) report. Prices have surged 35.7% since January 2020, although 80% of the increase has occurred since January 2021. The PPI for goods inputs to residential construction, including energy, decreased 1.2% as the prices of… Read More ›
Since the relatively low point at the onset of the pandemic on April 17, 2020, lumber prices have been volatile, with record setting spikes interspersed with periods of substantial declines. On balance over the entire period, however, softwood lumber prices have increased enough to add $14,345 to the price of an average new single-family home, and $5,511 to the market… Read More ›
Most analyses of lumber price trends and levels fail to account for inflation because the price data for softwood lumber used in framing applications is generally quoted using the Random Lengths Framing Lumber Composite Price or lumber futures prices–neither of which is inflation-adjusted. Adjusting for inflation shows that, although the historical price differences are smaller in real terms than nominal,… Read More ›
The prices of goods used in residential construction ex-energy climbed 1.5% in December (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. The index was driven higher by large price increases for wood products. Building materials prices increased 15.9% in 2021 and have risen 18.6% since December 2020. Since declining 1.8% between July… Read More ›
According to NAHB’s latest estimates, changes in prices for softwood lumber products that occurred between April 17, 2020 and July 08, 2021 are enough to add $29,833 to the price of an average new single-family home, and $9,990 to the market value of an average new multifamily home. The increase in multifamily value, in turn, translates to households paying $92… Read More ›
According to NAHB’s latest estimates, rising softwood lumber prices over the last 12 months have added $35,872 to the price of an average new single-family home, and $12,966 to the market value of an average new multifamily home. That increase in multifamily value translates to households paying $119 a month more to rent a new apartment. These estimates are based on the softwood lumber used… Read More ›
As most industry observers know, softwood lumber prices have been extremely high and volatile over the past year. During an unprecedented four-month surge in 2020 prices nearly doubled, reaching an all-time high in September. Since then prices have continued to fluctuate, increasing recently to the point that they are now considerably higher than they were even at last September’s historic… Read More ›
(Note: lumber pricing continues to rise, so these numbers have been surpassed. See this post for an estimate updated on August 22 with a $16,000 impact.) According to NAHB’s standard estimates of lumber used to build the average home, the recent spike in softwood lumber prices has caused the price of an average new single-family home to increase by $14,116… Read More ›
In a recent NAHB survey, over 40 percent of builders said construction costs in general are causing home buyers to hold back from purchasing a new home, and over 90 percent said that lumber prices specifically are hurting affordability. The results are consistent with yesterday’s post, which described a surge in the number of builders reporting a shortage of framing lumber. The new results… Read More ›
A mill fire in British Columbia sent lumber prices higher, adding to a number of supply side developments that moved the Random Lengths Framing Lumber Composite Price (FLCP) to $316 on Friday. This price, if maintained, would trigger provisions in the US-Canadian Softwood Lumber Agreement (SLA) reducing tariffs on imports of Canadian lumber. An average price above the $315 limit… Read More ›