The pandemic has affected the price and supply of a wide range of products. From toilet paper to video games to cleaning supplies, prices have spiked, and common items have become difficult to find. Add lumber to the list.
Lumber prices have increased due to extremely high demand for housing. This means that if you’re interested in a new addition for your home in Brighton, CO, expect delays and steeper costs.
How much lumber prices have increased
The National Association of Home Builders says that lumber prices have jumped more than 300 percent since April 2020. This is a big deal for anyone interested in a new home, as costs have skyrocketed an average of $36,000. The price per 1,000 square feet is up by $1,100, and many in the industry are saying they’ve never seen anything like the current climate.
This applies to pine timber and plywood. What’s the hold up? Many people have more money to spend due to spending more time at home combined with government stimulus cash. That has led to increased demand for wood for home additions, new homes, decks and other projects.
Mix that with a red-hot housing market where homes are going for tens of thousands of dollars over asking price, and you have all the ingredients for a shortage of lumber. Consequently, the sale price of an average, new, single-family home has gone up more than $24,000.
When will prices return to normal?
If you’re interested in new additions in Brighton, CO but don’t want to pay a premium, then you’re likely thinking about when costs will return to Earth. Unfortunately, experts say that the demand for lumber will likely remain steady for the immediate future.
That said, domestic production will likely increase in response to demand. Some lumber mills have been working at reduced capacity, but with pandemic restrictions easing, many facilities should return all their workers to full force, as vaccines are available to all adults. Combine that with homeowners no longer being stuck indoors, and things could slowly get back to normal.
Still, predictions are that it will take until the end of 2022 for lumber prices to stabilize. With lumber prices increased in Brighton, CO, expect to pay more than you would think if you’re still interested in adding on a new bathroom or building a new home—or you may want to hold off for now. Still, this may be a worthwhile investment, as low interest rates make additions and homeownership more affordable.
The lumber price increase in Brighton, CO has also been happening across the country. When you’re thinking about a new project, Jim Cope Construction LLC can help. With more than four decades in the business, our team has the expertise that you’re looking for. No job is too big or too small. We can find ways to make your project fit your budget. Give us a call if you want your project done right the first time and at a more than reasonable cost.