Is Another Lumber Price Hike in the Offing?
After reaching an all-time high of $1,500 per thousand board feet (MBF) in May this year, lumber prices fell precipitously to an August low of $483 MBF. Then, prices began to creep up, causing some economists to cry inflation. In September, lumber prices hit $628 MBF, leaving homebuilders, consumers, and others wondering how far prices will continue to climb. Clearly, lumber price trends are difficult to predict.
While some analysts predict rising prices as supply catches up to demand, others are saying this won’t happen, citing a few reasons, such as:
- As supply and demand level off, prices will go down
- Homeowners are beginning DIY projects they put off over the summer
- The rush back into hardware stores will probably drive prices higher in the short term, then level off, according to a Fortune.com article
- With families returning from vacation and the start of the school year behind them, homeowners are likely to begin more home remodeling projects
The fact remains that in the short term, lumber price trends are difficult to predict for the remainder of 2021 and beginning of 2022. If lumber mills continue to shut down every time prices fall, it could be a very bumpy ride for construction companies and home builders trying to time their purchase to save money.
Flegel’s Construction Co. Helps You Find Cost-Effective Alternatives to Lumber
If you’re looking for a homebuilder or remodeling company in the Bay Area, Flegel’s Construction Co. has you covered. When lumber prices are on the rise, we look closely at concrete, composite, steel, and other alternatives that can cut down the amount of lumber needed to frame and build your home.
The same holds true for remodeling projects. From out-of-the-box thinking such as straw bale or shipping container framing to reducing lumber waste, our construction team will do everything possible to keep your project within budget.
There’s enough evidence showing lumber price trends are difficult to predict. Short of investing in a crystal ball and watching the lumber market closely, there’s little homeowners can do about the cost of lumber. Instead, you can partner with industry professionals that can help you find suitable alternatives that can save you money on remodeling projects for your classic, modern, or Eichler home.
Contact Flegel’s today to discuss your remodeling project or new build in the Bay Area. We shop around to find the best materials at the best prices for your home construction project.