Rising Demand and Supply Constraints Cause Lumber Prices to Spike

Rising demand from a surge of DIY projects and restricted supply from limited capacity at lumber mills caused lumber prices to reach their highest levels since the third week of March.

Demand stemming from a surge of DIY projects coupled with restricted supply due to lumber mills operating at dimished capacity have led to a recent upsurged in lumber prices, according to the NAHB Now blog. Prices rose by 6.3% for the week ending May 15 and framing lumber prices have increased 13% since, according to the latest Random Lenghts Framing Composite Price. According to the NAHB, the recent price hikes as a result of market conditions should be viewed as a sign that mills must ramp up production and the home building industry continues into the spring home buying season.