After Trending Upward for Months, Lumber Prices Seeing October Decline

The price of framing lumber has dropped by around $200 per thousand feet board in the last month, according to various reports, although overall the price is still at an historic high.

Those prices initially shot up this spring during the initial weeks of the Covid-19 economic shutdown, due largely to a sudden demand that far outstripped supply.

Between April and mid-summer, lumber prices increased by almost 120%. According to the National Association of Home Builders, that increase was thought to have added around $16,000 to the price of an average new single-family home.

But in the weeks since mid-September, the price has actually decreased by 20%, from $950 per thousand board feet to $750.

Analysts say the main reasons for this year’s lumber increase are related to the unanticipated increase in purchases for home expansion and repair projects, a higher tariff on Canadian lumber, and mill operators who slowed down production this spring.

In response to the nationwide demand for more lumber, a number of industry groups have since called on U.S. lumber producers to increase output, sending pleas to President Trump and members of Congress expressing their concerns.
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The housing news site YieldPro notes that while the price of soft plywood products has seen the greatest increase this year, hardwood lumber and softwood lumber prices have remained fairly steady since late 2019.

By Garry Boulard

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