Constructiondive.com recently published an article that we thought did an excellent job of explaining the surge in lumber prices. You can read the complete article here. Here is a bullet point summary of the items discussed in the article:
- Many sawmills closed down during the recession of 2008 – 2009, reducing supply.
- Tarriffs on Canadian softwood lumber have increased prices.
- West coast wildfires have reduced supply.
- COVID sbutdowns at sawmills reduced supply.
- Millions of people being forced to stay home increased demand.
- The demand for housing is greatly outpacing supply, driving materials prices higher as builders try to keep up with demand.