The home-renovation boom is pushing lumber prices to record highs.
Lumber futures climbed to a record $1,004.90 U.S. per 1,000 board feet, rising for the eighth trading session in nine this month. Prices have now climbed 40% year-to-date as supply constraints tighten, fueling concerns for home builders across North America.
Lumber prices have been spurred by strong demand amid a boom in home remodeling and construction fueled by stay-at-home orders. The strong demand has hampered producers’ abilities to restock inventories, pushing prices higher and higher.
The current rally in lumber prices has sparked concerns that inflation will creep into the home-buying market. The National Association of Home Builders in the U.S. is lobbying government officials in Washington, D.C. to help improve supplies by removing import tariffs on Canadian lumber and boosting output.
With homebuilding and renovation projects likely to pick up in the spring, demand is expected to rise further and timber and staffing shortages could occur, warns the home builders lobby group.
