Why Lumber Prices Have Spiked 250%

By Sherwin Loudermilk

Founder & President, Loudermilk Homes

Spot lumber prices hit a record this week, capping a 250% spike in lumber prices over the past year.

In addition to framing lumber, the price increases also flow through to plywood, engineered beams, oriented strand board (OSB) and other building materials derived from wood.

Soaring demand for lumber amid a booming residential construction market has put logging and milling companies under enormous strain, while labor constraints and shutdowns at the start of the pandemic shrunk capacity for production.

Other events in the years before the pandemic also contributed.

Thousands of acres of North American timberland burned in wildfires over the past decade, and there have been infestations of beetles and other pests that destroyed trees.

The National Association of Home Builders joined with dozens of other associates that support the residential construction industry to urge the U.S. Department of Commerce to renew efforts to increase domestic production of lumber.

At Loudermilk Homes, we use methods such as progressive value engineering to reduce costs in every home we build without compromising quality and performance.

We look for opportunities to stack walls, which reduces lumber and framing costs. We try to shorten runs for HVAC duct work, which lowers energy consumption. We seek ideal ways to situate the home on the lot and place windows and doors so that the patterns of the sun have a minimal impact on heating and cooling.

While we can’t control the spot price of lumber or domestic production capacity, our superintendents are doing everything they can to contain costs and take the sting out of unpredictable changes in building materials.

It’s good for the environment, and good for the bottom line.